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Shares of Dewan Housing Finance Corp Ltd (DHFL) fell as much as 18 per cent to Rs 106.85 on Wednesday, on media reports that the home loan lender would halt early withdrawals from existing deposit schemes and stop taking new ones altogether.
DHFL has been under scrutiny since a media outlet alleged in January that it diverted loans from Indian state-run lenders to shell companies, including those linked to its controlling shareholders. Its stock has lost a quarter of its value since then.
A revision in credit ratings of their fixed deposit programme prompted DHFL to take these measures, according to a statement from the company to its depositors and financial planners.
On May 14, CARE Ratings placed some of the company's debt instruments, including non-convertible debentures, or NCDs, worth Rs 46, 655 crore on credit watch with negative implications.
The latest development comes months after Chief Executive Harshil Mehta resigned amid financial mismanagement allegations and DHFL re-designated Chief Financial Officer (CFO) Santosh Sharma to another role.
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