HDIL plunges as NCLT admits firm under insolvency proceedings

Reuters August 21 | Updated on August 21, 2019 Published on August 21, 2019

HDIL buildings.   -  The Hindu

Shares of Housing Development and Infrastructure Ltd slump 20 per cent, their biggest daily percentage loss since October 10, 2008.

Debt-ridden real estate firm has been admitted under provisions of insolvency bankruptcy code passed by National Company law Tribunal (NCLT) pursuant to an application filed by the Bank of India. The Mumbai-based company further said it is under the process to file an appeal to National Company Law Appellate Tribunal (NCLAT) against the NCLT order.

Read more: NCLT admits application for initiating IBC proceedings against HDIL

On June 5, NCLT had directed HDIL to pay ₹980 million ($13.70 mln) to Bank of India. HDIL owes around ₹520 crore to Bank of India and it had agreed to pay it in tranches.

Around 6 million shares change hands vs 30-day average of 14.9 million shares. Up to last close, HDIL has lost 58 per cent this year, while Bank of India dipped 36 per cent. At 10.55 am, the stocks of HDIL were trading 19.96 per cent lower at ₹8.78.

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Published on August 21, 2019
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