DHFL stock falls up to 7.4% on ICRA downgrade, company clarifies

The stock has fallen as much as 7.4 percent to Rs 126 in intra-day deals. It was currently trading 4.9 percent lower on BSE. In comparison, the S&P BSE Sensex was down 0.8 percent.

Questioning the downgrade, DHFL said that it is a questionable rating action by ICRA, arguing that, "ICRA's action  comes barely three weeks after the company was downgraded. Since then, no material event has taken place which would have compelled the rating agency to review the ratings in less than a month’s time."

DHFL also said that ICRA has taken action  without taking any cognizance of the fact that the company is in advanced stages of fund raising transactions.

DHFL has been facing headwinds since last year September after DSP Mutual Fund sold its bonds of worth Rs 300 crore a yield of 11 percent.

In an interview to CNBC TV18, Kapil Wadhawan, Chairman & Managing Director of DHFL said, "Post September 21, 2018, the company went on a sell down mode on retail assets. Since then, Rs 18000 crore worth of assets have been sold down since then,"

He also added that no forensic audit being conducted on the company.