Unenthused with management’s efforts to allay investor fears, the stock of Mumbai based Housing Development and Infrastructure (HDIL) slid 22.4% today as investors chose to sell the stock.
After massive sell off in its stock in the last three trading sessions, HDIL top management today said that its liquidity and debt position is comfortable and no pledged share has been sold by financial institutions.
HDIL stock has tanked nearly 38% since Monday after the company said its vice chairman and managing director Sarang Wadhawan sold 5 million shares for Rs 57 crore.
Wadhawan sold this stake to meet the payment dues of Rs 64 crore obtain final approvals required for land bought in South Mumbai in late 2010.
“We know the decision has not gone down well with investors. It was taken to meet urgent land payment obligation. It has nothing to do with liquidity position of the company,” said Hari Prakash Pande, vice president, finance and investor relations at HDIL at a conference call today.
“The management and promoters are focused on the company and promoters took this decision to support the company,” Pandey said.
Pandey clarified that promoters hold 37% of the company and 98% of is pledged.
“There has been no calls from lenders or take any warrants, The promoters will buy the shares sold in the market after six months,” he added.
On the debt position of the company, he said the standalone debt of the company stands at Rs 3472 crore as on December 31, 2012 and it has seen a decline of Rs 200 crore from September quarter. The consolidated debt stands at around Rs 4000 crore and average cost of debt is 13.35%, he said.
Pandey said the company has converted short term debt into long term and secured long term debt worth Rs 800 crore which have tenure of eight years.
“ The debt position of the company is comfortable and we do not have any significant debt repayment in the next nine months,” he said.
