HDIL promoter sold stake to fund Byculla plot acquisition

MUMBAI: Realty developer Housing Development Infrastructure’s promoter and vice chairman Sarang Wadhawan’s 50-lakh share sale last month that led to a major fall in the company’s share price was an effort to make partial payment for a 15-acre plot of Digvijay Mills at Byculla in central Mumbai.

The management of HDIL confirmed this in response to aquery at the company’s earnings conference call on Friday, but declined to give further details, saying the matter is currently sub judice.

Following the news of a minor stake sale by Wadhawan, that raised Rs 57 crore, shares of HDIL had declined for three straight sessions in January. The company, at that time, had only mentioned that the stake sale was executed to fund a second tranche of a land acquisition , without giving further details.

The company is expected to launch projects spread over a total of 8-10 million square feet in the next 12-15 months, Hariprakash Pandey, vice president-finance, told analysts and investors at the conference call.

HDIL’s total debt due for repayment in the next 12 months is around Rs 800-1,000 crore. "We have got a line of credit worth Rs 500 crore for long-term maturity that can be utilised if needed," said Pandey. The company’s total consolidated debt as on December end stood at Rs 3,920 crore. HDIL shares closed at Rs 66.95 on Bombay Stock Exchange on Friday, down 1 per cent from the previous close.