DLF records sharpest single day fall on Sebi ban; stock hit lifetime low

The stock tanked 30% to Rs 103, also its record low on the National Stock Exchange.

Shares of real estate major DLF recorded the sharpest single day fall since the company's listing on the bourses on July 2007, after the market regulator,  Securities and Exchange Board of India (Sebi), barred real estate major and six of its top executives, including Chairman K P Singh, from accessing the capital market for three years.

The stock tanked as much as 30% to Rs 103, also its record low on the National Stock Exchange (NSE).

At 1505 hours, a total of 90.87 million shares representing 20% of total free-float of equity changed hands on the NSE and BSE.

Earlier, on October 24, 2008, the stock plunged 24% after the benchmark sensitive index CNX Nifty plunged 12% in single day.

Sebi on Monday barred DLF and promoters from participating in the securities market for 3 years on the grounds that the company failed to reveal material information in its 2007 listing prospectus.

“While DLF can appeal this order, we believe this along with other recent adverse regulatory rulings and weak demand environment does not augur well for DLF. While valuations appear cheap (0.9x FY16E book), we maintain EW rating and reduce our price target to Rs 159 due to macro and regulatory headwinds,” says analyst at Barclays India.