Indiabulls Group shares dip on Veritas report

Indiabulls Power, Indiabulls Financial Services and Indiabulls Real Estate has dipped more than 10% each on the BSE

Shares of Indiabulls Group companies such as Indiabulls Power, Indiabulls Financial Services and Indiabulls Real Estate have dipped more than 10% each after Veritas, an independent Canadian Research firm, recommended a 'sell' on all stocks in the Indiabulls Group in a report dated August 1, on concerns of lack of disclosure and corporate governance.

“The disclosures at Indiabulls Real Estate and Indiabulls Power are unreliable and that the sole purpose of Indiabulls Real Estate is to bilk institutional and retail investors for the benefit of select insiders,” Veritas said in a report.

“The controlling shareholders are running the organization as a piggybank, while proclaiming propriety and espousing credibility. The association of reputed institutions, individuals and organizations with the Company is vexing to say the least,” added report.

Among the individual stocks, Indiabulls Real Estate and Indiabulls Power have tanked 12% each at Rs 49 and Rs 11.85 respectively, while Indiabulls Financial Services dipped 11% at Rs 188 on the BSE.