HDIL gains 5%, up 12% in 2 days on Rs 650 cr land sale

NEW DELHI: Shares of HDIL climbed over 5 per cent on Tuesday, taking its two-day gains to nearly 12 per cent, after the real estate developer said it had sold development rights of a parcel of land in Mumbai for a consideration of Rs 649.51 crore.

“The company has signed a development agreement with DK Realty to sell the development rights with respect to the piece and parcel of land situated at Kurla, Mumbai, for a consideration of 649.51 crore," the company said in a regulatory filing to BSE.

The stock climbed 5.11 per cent to hit a high of Rs 73.95 on BSE. The scrip had risen 6.2 per cent in the previous session. The development is expected to help the company cut its debt, which stood at Rs 3,265 crore at the end of the September quarter.

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In a recent conference call, Hariprakash Pandey of HDIL had said, "We are very confident that we should be able to bring down the debt and I think by March 2016, we should have somewhere around Rs 2,500 - 2,600 crore net debt."

HDIL has reported 7 per cent YoY drop in its consolidated net profit to Rs 57.79 for the September quarter, compared with Rs 61.88 crore in the corresponding quarter of last year. The company had a total land bank of 243.99 million sq ft as on March 31.