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Last Trade - 07/05/21

Sector
Financials
Size
Mid Cap
Market Cap £783.5m
Enterprise Value £6.50bn
Revenue £992.8m
Position in Universe 322nd / 3107

Indian home loan provider Dewan's shares slump over media report

Tue 29th January, 2019 2:42pm
NEW DELHI, Jan 29 (Reuters) - Shares of home loan provider
Dewan Housing Finance Corp  DWNH.NS  fell 8 percent on Tuesday
following a media report that alleged financial misappropriation
by the controlling shareholders of the company.
    Dewan Housing, one of India's largest housing finance
companies, said the Cobrapost website's report "appears to have
been done with a mala fide intent to cause damage to the
goodwill and reputation" and "resulting in erosion in
shareholder value."
    Cobrapost did not immediately respond to an email seeking
comment on the Dewan statement.
    In its online report, Cobrapost said publicly available data
showed funds, including a large amount secured from Indian state
banks, was diverted to shell companies in India and abroad to
buy assets.
    Cobrapost alleged that through the shell companies, money
the company borrowed from the banks ended up with other entities
controlled by the Wadhawans. Cobrapost alleged that this amounts
to a criminal offence under the Indian penal code.
    The website, which is best known for sting operations on
businessmen, politicians and media houses, also said that the
Wadhawans broke several laws governing companies.
    The Wadhawan group did not immediately respond to an email
and calls seeking comment.
    India's capital markets regulator did not immediately
respond to a request seeking comment. The finance ministry
declined to comment.
    India's Bank of Baroda  BOB.NS  said on Tuesday it had an
exposure of 40 billion rupees to Dewan Housing and said it would
have to look into the veracity of the allegations against
company.  urn:newsml:reuters.com:*:nFWN1ZT0ES
    Shares of Dewan Housing fell by as much as 12.3 percent to
hit a low of 162.20 rupees before recovering somewhat to close
at 169.70 rupees, their lowest level in almost three years.
About 43.6 million shares - 4.8 times its 30-day average trading
volume - changed hands during a day of volatile trading.   
    A string of defaults at one non-banking lender,
Infrastructure Leasing and Financial Service Ltd (IL&FS),
triggered sharp falls in Indian stock and debt markets last
autumn amid fears of contagion spreading to the rest of the
financial sector.
    The shadow banking sector comprises around 11,400 firms with
a combined balance-sheet worth more than 22 trillion Indian
rupees ($309.31 billion). The formal banking sector is almost
four times as big, according to the country's central bank.
($1 = 71.1110 Indian rupees)

 (Reporting by Sudarshan Varadhan and Aftab Ahmed; Editing by
Martin Howell; Sanjeev Miglani and Jon Boyle)
 ((Sudarshan.Varadhan@thomsonreuters.com; +911149548059;
Twitter: https://twitter.com/turvytopsy @turvytopsy; Reuters
Messaging: sudarshan.varadhan.thomsonreuters.com@reuters.net))
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