DHFL hits upper circuit

The stock was buzzing on Thursday as the market was rife with discussions that the company might undertake a majority stake sale deal. The stock was trading near its 10 per cent upper circuit limit.

The company's management had indicated earlier that it is seeking a strategic partner. The current buzz in the market is that DHFL is in advanced talks with Baring Private Equity and Piramal Group, who are likely negotiating for a majority stake and management control in the housing finance company.

Post the IL&FS crisis that adversely hit the non-banking financial sector in India, DHFL is facing severe liquidity issues. Last week, the rating agency CRISIL downgraded the company's Rs. 850 crore commercial papers to CRISIL A2+ from CRISIL A1.

On Thursday, at 10:39 hours, the stock of Dewan Housing Finance Corporation (DHFL) was stuck with no seller in its 10 per cent upper circuit limit of Rs. 150.00 per share, up by Rs. 13.60 or 9.97 per cent on BSE. On the other hand, the chief contender Piramal Enterprises was trading at Rs. 2,632.40 per share, up by Rs. 10.70  or 0.41 per cent. 

Meanwhile, the benchmark indices BSE Sensex and Nifty were taking a breather at 38,272.18, up by 139.30 points or 0.37 per cent and 11,490.35, up by 45.30 points or 0.40 per cent, respectively. BSE Sensex was a sharp spike of more than 200 points in the morning session scaling 38,379.80.