Indiabulls Housing Finance saw its sharpest intra-day fall since listing, plunging 38 per cent to Rs 240, also its 52-week low on the BSE. The trading volumes on the counter jumped four-fold with a combined 59 million equity shares changed hands on the NSE and BSE till 12:06 pm.
Among individual stocks, Indiabulls Ventures (down 20 per cent to Rs 124), Indiabulls Real Estate (down 10 per cent to Rs 45.90) and Indiabulls Integrated Services (down 5 per cent to Rs 130) recorded a sharp fall. The other Indiabulls Group companies hit their respective lower circuit on the BSE on Monday with no buyers for these counters. On Friday, Indiabulls Group scrips ended lower in the range of 5 per cent to 16 per cent.
According to a Business Standard report, the Delhi High on Friday agreed to hear a Public Interest Litigation (PIL) filed against Indiabulls Housing Finance Limited, which has alleged fund diversion and accounting irregularities. A two-judge Bench led by Chief Justice D N Patel issued notice to Indiabulls Housing Finance, its promoters, the Reserve Bank of India (RBI), and the Ministry of Corporate Affairs and sought their response within two weeks. CLICK HERE TO READ FULL REPORT
The RBI move came days after the Delhi Police’s Economic Offences Wing registered a complaint against the board of LVB, alleging cheating and misappropriation of funds. Saturday’s development could be a major setback for the proposed merger of Indiabulls Housing Finance with LVB, which is awaiting the RBI’s nod. CLICK HERE TO READ FULL REPORT
Shares of LVB, too, hit their lower circuit of 5 per cent at Rs 34.75, also its multi-year low on the BSE. There were pending sell orders for 5.05 million equity shares on the NSE and BSE. The stock of private sector lender was trading close to its all-time low level of Rs 26.08 touched on March 4, 2009.