Dewan Housing shares again in red as investors give weight to Cobrapost charges

Dewan Housing Finance shares eroded further in today’s trade after an 8% fall Tuesday. The share was down 6.5% at ₹159, having touched a low of ₹153.50 earlier in today’s trade so far on the BSE. Investors seemed to give more weight to allegations leveled by portal Cobrapost against the company’s promoters, ignoring the news of the company raising ₹1,375 crore from securitization of loans.

The money was raised from global alternative investment management firm Oaktree Capital.

Cobrapost accused DHFL's primary promoters of having siphoned off more than ₹31,000 crore of public money. The transactions were carried out through grants of loans and advances to shell companies and by using other means, Cobrapost claimed.

Money was allegedly routed through dubious companies and parked outside India. The money has been used to buy shares/equity and other private assets in India, and abroad, including in countries like UK, Dubai (United Arab Emirates), Sri Lanka and Mauritius, Cobrapost alleged at a press conference called by it in the national capital on Tuesday.

Cobrapost claimed that the shell companies and the destinations of the siphoned-off money are linked to DHFL promoters -- the Wadhawans. It alleged that around ₹21,477 crore of DHFL’s funds were transferred to multiple shell companies without any declaration to the Ministry of Corporate Affairs.

The Kapil Wadhawan-led company had, in a BSE notice, termed Cobrapost’s allegations a “mischievous misadventure”. The company said it had has received ‘AAA’ credit rating from leading credit agencies.