Can Fin Homes in the red

Canfin Homes is down in the deep red today morning. The stock price slipped over 8% to Rs.445.95; it has recouped from that level and is now 6% down at Rs.452 levels.

Canara Bank had announced plans to divest its entire 30.44% stake in Canfin Homes and on Saturday, it announced that it has called off this divestment plan. HDFC was reportedly the frontrunner in picking up this stake.

As our Editor, Mr.SP Tulsian has explained to the various investors in our “Stock Query” section, this is just a postponement and not cancellation of the divestment plan. Can Fin Homes wanted to complete tis before end of FY18 and probably because it did not get the price that it wanted, maybe the quotes came in much lower given the current sentiments for PSU banks; it decided to scuttle the plan for now.

Mr.Tulsian expects the process to get reinitiated by Canara Bank in the nest 2-3 months where it could get a much higher price for the stake. He has said that this current development should not worry the long term investor.