HDIL falls 5% on talks the company may lose key project

However, the company denied any such proceedings

Shares of Mumbai-based property developer HDIL fell 5.15% on market speculation that the company might lose its airport redevelopment project in Mumbai where it is building homes for slum dwellers.

The stock which opened Rs 64.50 on Tuesday, touched an intra-day high of Rs 64.85 in the early morning trade, before closing at Rs 60.80. BSE Realty Index shed 3.63% gains today.

"There is a buzz that the government is mulling cancellation of contract of MIAL (Mumbai International Airport Limited) Project which has partly triggered the fall," said an analyst from Mumbai-based brokerage.

When contacted Hari Pande, vice president, finance, HDIL said: "It is not true. I am not aware of the development,."  Sanjay Reddy, group chairman, GVK group, refused to comment on the issue at a event on aviation in the city on Monday. GVK runs the MIAL.

"Already analysts are not valuing this project as it is stuck for the last 3-4 years," the analyst said.