Rakesh Jhunjhunwala wealth suffers hit from this NBFC stock; Dear DHFL, what went wrong?
In just four days, big bull Rakesh Jhunjhunwala became poorer by a whopping 42% due to DHFL share price plunge. Worryingly, investors have still to shed selling sentiments.
Big bull Rakesh Jhunjhunwala wealth, as well as of many other other investors has eroded in a big way due to Dewan Housing Finance Corp (DHFL) share price plunging. DHFL has made Jhunjhunwala poorer by a whopping 42% in just four days! DHFL's wild ride on Dalal Street has become a drag even on NBFC sector. With the bloodbath in DHFL, the attention has also shifted to its impact on one high profile investor who suffered massive erosion in his wealth.
On Thursday, DHFL share price has dropped by nearly 20% by touching an all-time low of Rs 129.60 on BSE. However, at around 1439 hours, DHFL was trading at Rs 137.70 per piece down by Rs 23.90 or 14.79% on the index.
But did you know, in four days DHFL has nosedived by 41.62% compared to last week near Rs 222-pricing level. With this selling pressure, investors including Jhunjhunwala have become that much poorer, as per holdings.
The current day’s price drop in DHFL can be attributed to a news which indicated that, the company is set to be probed by Ministry of Corporate Affairs (MCA).
However, DHFL made it very clear to exchanges that they have not received any communication from MCA in relation to any probe against the Company and therefore deny the contents of the news item, which alleges a fraud of Rs 31,000 crore.
DHFL hit back by saying, “This mischievous misadventure by Cobra Post appears to have been done with a mala fide intent to cause damage to the goodwill and reputation of DHFL and resulting in erosion in shareholder value.”
Despite, DHFL rubbishing the buzz, investors are yet to restore their faith in the company.
For its stock price, DHFL said, “Our knowledge there is no other price sensitive information under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 which could have bearing on the share price of the Company.”
Coming back to Jhunjhunwala, DHFL has been among his favorite stocks, but the ace investor's sentiment has moved towards selling direction. Between October to December, 2018 quarter, Jhunjhunwala trimmed down his holding by 0.73% in DHFL. He now holds 2.46% in the company with 7,728,500 equity shares which are now Rs 124 crore.
According to TrendLyne.com data, on Wednesday, Jhunjhunwala’s DHFL portfolio valued at Rs 133.2 crore. In first half of 2018, when DHFL was trading near Rs 690-mark, Jhunjhunwala’s wealth in it was valued between Rs 300 crore to Rs 600 crore.
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