DLF tumbles after High Court ruling on land allotment in Gurgaon

DLF lost 8.47% to Rs 167.55 at 10:55 IST on BSE after the announcement of a court ruling regarding land allotted to the company in Gurgaon.

The announcement was made before market hours today, 4 September 2014.

Meanwhile, the BSE Sensex was down 123.37 points, or 0.45%, to 27,016.57

On BSE, so far 10.22 lakh shares were traded in the counter, compared with an average volume of 13.07 lakh shares in the past one quarter.

The stock hit a high of Rs 175.90 and a low of Rs 167 so far during the day. The stock hit a 52-week high of Rs 242.80 on 9 June 2014. The stock hit a 52-week low of Rs 121 on 4 September 2013.

The stock had underperformed the market over the past one month till 2 September 2014, falling 8.25% compared with 6.04% rise in the Sensex. The scrip had also underperformed the market in past one quarter, sliding 12.15% as against Sensex's 9.46% rise.

The large-cap company has an equity capital of Rs 356.35 crore. Face value per share is Rs 2.

DLF said that a judgement was passed on Wednesday, 3 September 2014, by the Punjab and Haryana High Court in a writ petition filed before it challenging the acquisition by Haryana state government with respect to 350 acres of land in Wazirabad Village, Gurgaon. The Court while upholding the acquisition has passed certain observations regarding the allotment of the land to DLF.

DLF said that the company is awaiting a copy of the order and can offer detailed comments only after that. However, at this juncture the company would only like to clarify that the said land was awarded to DLF by two rounds of international competitive bidding process, DLF said. The company further clarified that the project is an independent project to be developed in the future and has no correlation whatsoever with any of the ongoing, existing or completed projects of the company including DLF 5, the company said.

The Supreme Court had on 27 August 2014 directed the company to deposit Rs 630 crore in its registry within three months, rejecting its request to stay the order of the Competition Commission of India (CCI) that had imposed the penalty over unfair trade practices.

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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