Unitech falls 11% as Supreme Court stays NCLT Order

The stock dipped 11% to Rs 6.85 in intra-day trade, extending its Tuesday 5% decline on the BSE

Unitech dipped 11% to Rs 6.85 on the BSE in intra-day trade, extending its Tuesday 5% decline, after the Supreme Court today stayed on the National Company Law Tribunal (NCLT) Order suspending its directors and allowing the government to appoint its nominees in their place.

Unitech on Monday, December 11, had filed an appeal before the Hon’ble Supreme Court of India against the Order of NCLT dated December 8 inter alia directed the suspension of all existing directors of the company on the request of the Central Government, subject to compliance of directions of the Supreme Court.

In last three trading sessions (December 7 and December 11), the stock of Unitech had rallied 35% from Rs 5.96 to Rs 8.06 after the corporate affairs ministry had moved the NCLT seeking management control of debt-ridden real estate company on the grounds of alleged mismanagement and diversion of funds.

At 11:21 AM; the stock was trading 10% lower at Rs 6.90 on the BSE, as compared to 0.35% rise in the S&P BSE Sensex. The trading volumes on the counter nearly doubled with a combined 85 million shares changed hands on the NSE and BSE so far.