HDIL shares reverse course, close nearly 2% higher on settlement talks with Union Bank
Mumbai: Shares of Housing Development & Infrastructure Ltd (HDIL) on Wednesday reversed course and jumped as much as 9.5% after the company said it is in talks with Union Bank of India for a one-time settlement to stop insolvency proceedings against its arm, Guruashish Construction Ltd.
The scrip, however, closed at Rs57.40, higher by 1.86% on BSE against the previous session’s closing. The HDIL shares closed at Rs57 on NSE, 1.06% higher than Tuesday’s closing.
According to a CNBC TV report, HDIL is in talks with Union Bank of India for a one-time settlement to stop insolvency proceedings against its arm. The company said it is looking to sell two assets to pay out its arm’s debt.
In morning trade, the stock fell as much as 20% to hit over 41-month low of Rs45.10, a level last seen on 6 March 2014. Since 2 August, the stock declined over 30%, while so far this year it rose 2%.
HDIL stock started falling after Union Bank of India filed insolvency petition in the National Company Law Tribunal (NCLT) against Guruashish Construction after it defaulted Rs250 crore repayment to the bank.
On 3 August, the company said in a notice to BSE that NCLT had appointed insolvency resolution professionals to carry out the functions. The company will file a reply and take appropriate measures.
Lord Abbett Securities and Societe Generale has sold its holdings in the company via a block deal on 7 August. Lord Abbett sold 3.07 million shares and Societe Generale sold 2.53 million shares of the company, according to National Stock Exchange data.
HDIL will report its June quarter earnings on 11 August. As of March 2017, the company has a total debt of Rs2,476.56 crore.