DLF hits record low after Sebi ban

DLF slumped 18.13% to Rs 120.10 at 9:33 IST on BSE after capital market regulator barred the company and its top executives from accessing the capital markets for three years.

Meanwhile, the BSE Sensex was up 3.82 points, or 0.01%, to 26,387.89.

On BSE, so far 42.50 lakh shares were traded in the counter, compared with an average volume of 11.14 lakh shares in the past one quarter.

The stock hit a low of Rs 111.25 so far during the day, which is also a record low for the counter. The stock hit a high of Rs 132.05 so far during the day. The stock hit a 52-week high of Rs 242.80 on 9 June 2014.

The stock had underperformed the market over the past one month till 13 October 2014, falling 16.60% compared with 2.50% fall in the Sensex. The scrip had also underperformed the market in past one quarter, falling 29.94% as against Sensex's 5.43% rise.

The large-cap company has an equity capital of Rs 356.39 crore. Face value per share is Rs 2.

DLF said before market hours today, 14 October 2014, that the order dated 10 October 2014 passed by the whole time member of Securities and Exchange Board of India (Sebi) has come to the notice of DLF only on 13 October 2014. The same is being reviewed by DLF and its legal advisors. DLF and its board wish to reassure its investors and all other stakeholders that it has not acted in contravention of law either during its initial public offer or otherwise. DLF and its board were guided by and acted on the advise of eminent legal advisors, merchant bankers and audit firms while formulating its offer documents. DLF will defend itself to the fullest extent against any adverse findings and measures contained in the Order passed by Sebi. DLF has full faith in the judicial process and is confident of vindication of its stand in the near future, the company added.

Market regulator Sebi on Monday, 13 October 2014, barred DLF and its chairman K.P. Singh along with five other company executives from accessing India's capital markets for three years.

The regulatory action stems from the DLF management's failure to disclose material information to investors during the firm's initial public offer in 2007.

According to media reports, the latest ban means DLF could now struggle to pay down its debt using equity or debt instruments regulated by Sebi. The company's debt reportedly stood at Rs 19802 crore at the end of June 2014.

On a consolidated basis, DLF's net profit fell 29.5% to Rs 127.77 crore on 24.7% decline in total income to Rs 1851.60 crore in Q1 June 2014 over Q1 June 2013.

DLF's primary business is development of residential, commercial and retail properties.

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