HDIL tanks over 40% in twelve trading sessions

Housing Development & Infrastructure fell 4.91% to Rs 3.87, extending recent decline on steep selling pressure.

Shares of Housing Development & Infrastructure (HDIL) slumped 40.55% in twelve trading sessions to its current market price of Rs 3.87, from a recent closing high of Rs 6.51 on 12 September 2019.

Meanwhile, the S&P BSE Sensex was down 293 points or 0.76% to 38,529.08.

The managing director of the crisis-hit Punjab and Maharashtra Cooperative Bank (PMC), Joy Thomas, has reportedly admitted to the RBI that the bank's actual exposure to HDIL is over Rs 6,500 crore, or a staggering 73% of its entire assets of Rs 8,880 crore.

As per regulations, single entity exposure limit for banks is 15% of their capital fund. For group companies, the exposure limit is 20%. Thus, PMC's exposure to HDIL is almost four-times of what RBI mandates.

HDIL is a real estate development company engaged in real estate activities with own or leased property. The firm has operations in the Mumbai Metropolitan Region. HDIL is in the bankruptcy court now after being hit by a severe cash crunch.

On the BSE, 2.35 lakh shares were traded in the HDIL counter so far compared with average daily volumes of 5.56 lakh shares in the past two weeks. The stock hit an intraday high and low of Rs 3.87, which is also an all-time record low for the counter. The stock hit a 52-week high of Rs 29.65 on 8 January 2019.

HDIL's consolidated net profit slumped 66.6% to Rs 8.24 crore on a 44.4% decline in net sales to Rs 92.63 crore in Q1 June 2019 compared with Q1 June 2018.

Powered by Capital Market - Live News