Govt to seek court approval to take control of Unitech; stock surges 20%

Till 02:46 PM; a combined 145 million representing 5.5% of total equity of Unitech changed hands and there were pending buy orders for 15.73 million shares on the NSE and BSE.

Unitech was locked in upper circuit of 20% at Rs 7.29 on the BSE with no sellers seen on the counter after media report suggested that the government to seek court approval to take control of the realty major.

The Exchange has sought clarification from Unitech with respect to news article appearing on www.business-standard.com on December 08, 2017 about the said report. The reply is awaited.

The counter has seen an over 10-fold jump in trading volumes. Till 02:46 PM; a combined 145 million representing 5.5% of total equity of Unitech have changed hands on the counter on the NSE and BSE. There were pending buy orders for 15.73 million shares on both the exchanges.

According to Business Standard report, the government has moved National Company Law Tribunal (NCLT) to take management control of realty major Unitech on grounds of mismanagement and diversion of funds.

Sources said that the Ministry of Corporate Affairs has not only sought  suspension of Unitech’s existing board and its chief financial officer in a petition filed with the National Company Law Tribunal, but it also wants to replace the board with 10 of its own nominee directors, added report. CLICK HERE TO READ FULL REPORT