HDIL shares nosedived after its vice-chairman and MD Sarang Wadhawan sold 5 million shares, reducing his stake to 0.99% from 2.19%, to help fund a land acquisition by the company
Mumbai: Realty player Housing Development and Infrastructure (HDIL), whose stock has plummeted nearly 38% in the past four days wiping out nearly Rs2,000 crore in market value, has said that the company is not facing any financial trouble and that it can comfortably service its debt.
“We have earlier also told the investors that we are very comfortable in our debt repayment schedule and it is as per our schedule,” HDIL vice-president for finance Hari Prakash Pandey said.
Shares of HDIL, which is primarily into re-development of projects in the city, on Thursday crashed 22%, eroding Rs905 crore from its market capital to Rs3,127 crore, as investors battered the stock after the company vice-chairman and managing director Sarang Wadhawan selling 50 lakh shares.
The scrip ended Thursday at Rs74.65, down 22.44% on the BSE after hitting an intra-day low of Rs72.55. In the past four trading sessions, it has lost nearly 38%.
On the share sale by promoters, Pandey said, “the decision to sell the stake was taken by the promoters because we needed to make an urgent payment on the same day itself to certain regulators to procure certain approvals... and we had to make the final tranche of payment to close the transaction.”
He further claimed: “It was a decision taken by the promoters to sell their stake and move ahead. It is absolutely no way reflecting the liquidity scenario of the company. We took certain decisions which have not gone down well with our shareholders, and the promoters have assured that there will not be any further sale of shares,” Pandey added.
He said the company’s debt has come down by Rs200 crore in the December quarter to Rs3,472 crore against Rs3,669 crore in the September quarter.
“As far as the overall liquidity scenario of the company is concerned, the way the Mumbai real estate market has improved in the last two quarters with better approvals, we are getting better realisation on sale of FSI. We have launched a couple of projects in the last quarter and we are looking at launching one more in this quarter,” Pandey added.
HDIL on Thursday said Wadhawan had sold 50 lakh shares for about Rs57 crore following which his stake in the company came down to 0.99% from 2.19%. The promoters had 37.36% stake as of the December quarter.
In the early noon trading on Friday, HDIL was trading 6.7% up at Rs79.65 on the BSE, while the benchmark Sensex was marginally up at 19,972.
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
Fiercely independent and pro-consumer information on personal finance.
1-year online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )
