HDIL gallops after clarification

Housing Development and Infrastructure jumped 5.58% to Rs 28.40 at 12:14 IST on BSE after the company clarified that its promoters were working to resolve unpaid interest on a personal loan with lenders.

The company issued the clarification after market hours on Tuesday, 6 August 2013.

Meanwhile, the S&P BSE Sensex was down 29.17 points, or 0.16%, to 18,703.87.

On BSE, 24.55 lakh shares were traded in the counter as against an average daily volume of 40.42 lakh shares in the past one quarter.

The stock hit a high of Rs 28.55 so far during the day. It hit an intraday low of Rs 26.10, which matched the record low levels hit on Tuesday, 6 August 2013. The stock had hit a 52-week high of Rs 123.95 on 16 January 2013.

The stock had underperformed the market over the past one month till 6 August 2013, sliding 30.49% compared with the Sensex's 3.91% fall. The scrip had also underperformed the market in past one quarter, falling 51% as against Sensex's 4.78% fall.

The small-cap company has an equity capital of Rs 419 crore. Face value per share is Rs 10.

Housing Development and Infrastructure (HDIL) said that its promoters had taken a mortgage loan from Indiabulls Housing Finance (IHFL) for their personal use. The promoters took the loan against their property in Goa and interest on the said loan was not paid. The promoters will clear the dues shortly and matter is being sorted out with the lenders, the company clarified.

HDIL shares slumped 12.23% to Rs 26.90 on Tuesday, 6 August 2013, after media reports suggested that the company's promoters, Sarang and Rakesh Wadhwan, failed to pay interest worth Rs 3.5 crore accrued on their personal loan worth Rs 46 crore from IHFL. Reports added that promoters will have to pay the interest, that was due for the last 3 months, within 60 days. If the promoters fail to pay up, IHFL may proceed to take possession of mortgaged property in Goa, reports added.

HDIL unveils Q1 results on 14 August 2013. The company reported consolidated net loss of Rs 279.95 crore in Q4 March 2013, as against net profit of Rs 315.52 crore in Q4 March 2012. Total income declined 76.04% to Rs 155.54 crore in Q4 March 2013 over Q4 March 2012.

HDIL is engaged in real estate development business.

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