Mutual funds have Rs 8,650 crore exposure to DHFL & four group entities

Dewan Housing Finance (DHFL) is once again on investors’ radar after the mortgage lender’s December quarter numbers showed acute pain from the September liquidity crisis in the NBFC space, leading to a 37per cent drop in quarterly profit.

DHFL first came on the radar after domestic mutual funds sold off their bonds and commercial papers in distress following a debt default by IL&FS group. The company has since been busy raising money to pay off maturing debt. Disbursements dropped 95 per cent sequentially in December quarter even as the company bundled and sold off some high-yielding loans.

The company’s December quarter shareholding data showed ace investor Rakesh Jhunjhunwala sold some 23 lakh shares during the quarter to bring down his stake by 0.73 per cent to 2.46 per cent. Yet, several fund houses had exposure worth about Rs 8,650 crore to DHFL and its group entities like Aadhar Housing Finance, Essential Hospitality, Avanse Financial Services and Wadhawan Global Capital at the end of December.