HDIL slumps 5% as it goes insolvent, recovers later

Shares of Housing Development and Infrastructure (HDIL), the real estate development company, slumped as much as 4.96 per cent to Rs 5.55 on the BSE in the early morning trade on Tuesday after the company on Friday said Abhay Narayan Manudhane has been appointed as interim resolution professional (IRP) to run the insolvency proceedings that has been ordered against the company.

However, the scrip recovered later in the trade to hit a high of Rs 6.10 apiece. At 11:06 am, shares of the company were trading nearly 4 per cent lower at Rs 6.05 apiece. In comparison, the benchmark S&P BSE Sensex was trading at 36,941 levels, down around 400 points or 1 per cent.  

In a regulatory filing, HDIL said the IRP has been appointed to carry the functions as mentioned under Insolvency and Bankruptcy Code.

Earlier this month, the National Company Law Tribunal had admitted an application filed by Bank of India to initiate insolvency proceedings against debt-ridden realty firm HDIL. 

The Mumbai-based developer had said the company would file an appeal to the National Company Law Appellate Tribunal against the order passed by the NCLT.

In its regulatory filing, HDIL informed that the 23rd Annual General Meeting (AGM) of the Company for the financial year ended March 31, 2019, will be held on Saturday, September 28, 2019.