Shares of Indian home loan provider Dewan Housing Finance Corp Ltd fell for the fifth straight session on Friday, a day after it appointed an "independent" auditor to investigate allegations of financial mismanagement against the company.
Investigative media outlet Cobrapost alleged in a report published Tuesday that a large amount secured from Indian state banks was diverted by Dewan to shell companies, including those linked to its controlling shareholders.
Dewan Housing has denied lending to shell companies and said on Thursday it had not received any communication from the Indian government in relation to a probe, after Reuters reported on Wednesday India had started a probe into Cobrapost's claims.
Dewan's shares fell as much as 11.7 to 120 rupees, its lowest levels since May 2014. The Mumbai-headquartered company, was the second most heavily traded stock on the National Stock Exchange.