HDIL slumps on facing IBC proceedings

Housing Development & Infrastructure (HDIL) tanked after it informed that it has been admitted under the provisions of The Insolvency Bankruptcy Code, 2016 by an order passed by the National Company Law Tribunal (NCLT).

The scrip has hit a lower circuit of 20% at Rs 8.78 at 10:22 IST on the BSE.

NCLT had passed the order on 20 August 2019 pursuant to an application filed by Bank of India under Section 7 of IBC. Under the Insolvency Bankruptcy Code (IBC), financial creditors, operational creditors and corporate debtors can initiate corporate insolvency process. Section 7 of IBC gives power to financial creditor to file an application against corporate debtor.

HDIL said it is under the process to file an appeal to National Company Law Appellate Tribunal ('NCLAT') against the order passed by NCLT.

Meanwhile, the shares of Bank of India were trading marginally higher by 0.68% at Rs 66.95.

Meanwhile, the S&P BSE Sensex was up 13.08 points or 0.04% to 37,314.93.

On the BSE, 8.06 lakh shares were traded in the HDIL counter so far compared with average daily volumes of 1.52 lakh shares in the past two weeks. The stock hit a high of Rs 10.5 so far during the day.

The stock hit a 52-week high of Rs 35.65 on 04 Sep 2018. The stock has hit an intraday low of Rs 8.78, which is also a 52-week low for the scrip.

On a consolidated basis, HDIL's net profit fell 66.6% to Rs 8.24 crore on 44.4% fall in net sales to Rs 92.63 crore in Q1 June 2019 over Q1 June 2018.

HDIL is one of India's premier real estate development companies, with significant operations in the Mumbai Metropolitan Region.

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