DHFL gets green signal to resume lending; Stocks rise

The stock price of Dewan Housing Finance Limited (DHFL) increased on Monday, a day after the company announced that it has received an approval from Committee of Creditors (CoC) to resume lending operations from this month, starting with Rs 500 crore.

A report from DHFL administrator, R Subramaniakumar, shows that the company has recovered from Rs 1,700-Rs 1,800 crore per month from its previous loans. The CoC approval will help the company improve its loan book as well as maintain its value and remain attractive to potential suitors.

It is important to note that the company has not issued home loans for the past several months due to cash crunch. Moreover, DHFL is the first Non-Banking Finance Company (NBFC) or Housing Finance Company (HFC) to face the corporate insolvency resolution process. Presently, the Assets Under Management (AUM) of the company stands at Rs 1,19,952 crore.

At the time of market closing, the share of DHFL was trading at Rs 16.90, up by 4.97 per cent or Rs 0.80 per share. Its 52-week high is Rs 242.00 and its 52-week low is Rs 13.30.