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DHFL shares hit 5% upper circuit as bonds start trading again

This is the fourth straight day of gains for the stock.

Last Updated: Dec 18, 2019, 03.36 PM IST
New Delhi: Shares of Dewan Housing Finance Corporation Ltd (DHFL) gained 5 per cent after bonds of the company resumed trading for the first time since the embattled financier became the first from its industry to be put into administration.

The stock was up 4.95 per cent on the BSE. This is the fourth straight day of gains for the stock. It has climbed 15 per cent in the last four sessions.

DHFL bonds, worth about Rs 20 crore, sold at a discount yielding about 80 per cent, with traders saying Deutsche Bank was the buyer, ET reported. Deutsche Bank declined to comment.

Bonds were priced at Rs 22.39 against Rs 100 per unit face value, traders said.

The demand for junk bonds has been picking up in the past three- four months with foreign banks like Barclays, Deutsche, Bank of America owning such papers.

“Those select banks have dedicated focus on distressed assets. They are either keeping those papers on their books or passing them to their offshore clients," said a trader from a local bond house.
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