DHFL shares hit lower circuit as Edelweiss Asset Management moves High Court for recovery of dues

New Delhi: Shares of DHFL continued with its downtrend as it tumbled nearly 10 percent and hit its lower circuit limit on Thursday after Edelweiss Asset Management Ltd approached the Bombay High Court for recovery of dues from the troubled firm. The shares of DHFL are on a decline since 4 October, and have lost as much as 25.79 percent since then.

Bombay High Court: Allows Edelweiss AMC's plea for disclosure of all assets and liabilities of DHFL & existing restraint on DHFL on making payments to third parties will continue
Alert: Bombay High Court had earlier restrained DHFL from paying dues to any lenders till October 10 pic.twitter.com/okOtUMplXF

— CNBC-TV18 (@CNBCTV18Live) October 10, 2019

The stock nosedived 9.98 percent to Rs 23.45 on the BSE. On the NSE, the scrip tanked 9.96 percent to Rs 23.50. The shares hit lower circuit as well as 52-week low on both the stock exchanges. [caption id=“attachment_6023581” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] In a clarification to the exchanges on Thursday, Edelweiss Financial Services said its subsidiary Edelweiss Asset Management Ltd has approached the Bombay High Court for recovery of principal and interest dues from DHFL. “Our subsidiary, Edelweiss Asset Management Limited, (which has various schemes of mutual funds) has approached the Mumbai High Court for recovery of principal and interest dues from DHFL, in line with action taken by other peers in the industry,” Edelweiss Financial Services said in a BSE filing on Thursday. Meanwhile, leading depository CDSL freezed shareholding of the promoters of debt-ridden mortgage lender DHFL due to delay in announcement of the company’s financial earnings, sources had said earlier. DHFL, which has been severely impacted by the NBFC crisis which unfolded late last year following the IL&FS bankruptcy, has defaulted on multiple commitments.