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Dewan Housing Finance CEO Resigns, Shares Fall

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Dewan Housing Finance Corporation shares fell as much as 6.5 per cent on Thursday, a day after the company said its chief executive Harshil Mehta had resigned. Dewan Housing Finance shares opened lower at Rs 104.00 apiece on the National Stock Exchange (NSE) and slumped to an intraday low of Rs 103.95 in early trade, from their previous close of Rs 111.20. The housing finance company had said in a regulatory filing post-market hours on Wednesday that Mr Mehta had expressed his desire to resign from the position of whole-time director from the board of directors with immediate effect “due to full-time engagement with other assignments within the company”.

Dewan Housing Finance said the board accepted Mr Mehta’s resignation with effect from February 13, 2019. However, he would continue to be associated with the company as executive president-retail business with effect from February 14, 2019, Dewan Housing Finance further said.

Dewan Housing Finance or DHFL had appointed Mr Mehta as CEO in January 2015. 

The company also said its Nomination and Remuneration Committee of the Board of Directors recommended the appointments of Sunjoy Joshi as an independent director, and Srinath Sridharan as a non-executive director subject regulatory approvals.

On the Bombay Stock Exchange (BSE), Dewan Housing Finance shares fell as much as 5.9 per cent to Rs 104 at their weakest point in morning.

At 10:34 am, Dewan Housing Finance shares traded 2.7 per cent lower at Rs 108.20 apiece on the NSE, whose benchmark index was down 0.4 per cent.

Non-banking financial companies such as DHFL have been in focus amid concerns about a cash crunch in the sector.

A string of defaults at Infrastructure Leasing and Financial Service (IL&FS) had last year triggered sharp falls in the stock and debt markets, amid fears of contagion spreading to the rest of the financial sector.

(With agency inputs)

Source: NDTV Profit