DHFL stock tanks 10%, hits lower circuit; experts warn sell now, stay away, relisting prospects unclear.The heavy trading and delivery volumes in DHFL stock yesterday showed that investors were still buying the stock, some of them hoping to extract some value when the stock re-lists.
Investors buying shares of Dewan Housing Finance Corporation Ltd (DHFL) could be latching onto a pipe dream which may never fructify. The soon-to-be delisted company was in high demand on the stock exchanges on Tuesday, with 44 lakh shares exchanging hand on the BSE and a whopping 1.46 crore on the NSE. Today the stock hit the lower circuit to trade at Rs 20.60 apiece. However, The sharp drop in the shares of the soon-to-be delisted company comes after the stock soared 31% in the first 8 days of this month.
The heavy trading and delivery volumes in DHFL stock yesterday showed that investors were still buying the stock, some of them hoping to extract some value when the stock re-lists. However, this may be far from the truth with no future promises of re-listing made to shareholders. The value of DHFL shares with existing shareholders has essentially turned to trash, Vishal Wagh, Head of Research, Bonanza Portfolio, told Financial Express Online. “The wise move for investors is to sell their current holdings and invest in more lucrative options,” he added. Vishal Wagh further added that the relisting of DHFL shares remains a distant dream which may or may not be achieved.