NEW DELHI: Big Bull Rakesh Jhunjhunwala bought 13.34 lakh shares of Dewan Housing Financial Corporation (DHFL) in what was the worst quarter for the stock in its trading history. The ace investor raised his stake in the housing finance company by 39 basis points to take his holding to 3.19 per cent at the end of September quarter from 2.8 per cent at the end of June quarter.
A 56.90 per cent drop in the market value of the scrip during the second quarter was its worst ever, data compiled from BSE since 1991 suggests. Jhunjhunwala has been holding the stock at least since 2013, data available with Ace Equity suggests.
The stock was in the eye of a storm during the second quarter when fund house DSP offloaded Rs 200-300 crore worth of commercial papers of the home finance company at higher yields. DSPs move triggered rumours of a payment default by DHFL, which the company strongly denied. It said there had not been a single instance of delay on any repayment of any liability.
There were concerns that liabilities of many NBFCs, including that of DHFL, will get re-priced faster than assets, thanks to an aggressive migration towards shorter-tenure borrowings, which were available cheaper than longer tenure one in last one year.
Brokerage Emkay Global in a recent note suggested that 12 per cent of DHFLs liabilities (nearly 17 per cent of market borrowings) were maturing in three months against 9 per cent of its total assets (nearly 3 per cent advances).
Axis Mutual Fund, IDFC Mutual Fund and JM Mutual Fund were seen trimming their stakes in the company in September.
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