HDIL wipes out over 50% of investors’ wealth in 2013
Most of promoters' shares are pledged and the stock fell sharply last month on concerns that promoters pledged shares were liquidated.
By ET Online | Updated:
NEW DELHI: HDIL came under tremendous selling pressure on Wednesday and the stock slipped to hit its record low of Rs 47.90 in trade, after ET Now reported that CARE has revised its rating of the company’s Non Convertible Debentures to ‘default’.
On Tuesday, Credit Analysis and Research Ltd revised its rating from CARE BBB+ (Triple B+) to CARE D to its non-convertible debentures issued by the company.
“The revision in the ratings of Housing Development and Infrastructure Limited (HDIL) reflects the ongoing delays in servicing its Non- Convertible Debentures obligations,” CARE said in a note.
HDIL closed 19.90 per cent lower at Rs 48.70. It has hit a record low of Rs 47.90 on the BSE and a high of Rs 61.00 in trade today. The stock has plunged over 50 per cent so far in the year 2013 as compared to 2.79 per cent fall in the BSE Sensex.
The company has eroded 56 per cent of investor’s wealth so far in the year 2013, as of March 20 data.
Sudip Bandyopadhyay, MD & CEO, Destimoney Securities Pvt. Ltd in an interview with ET Now advised investors to stay clear from real estate stocks including HDIL, Oberoi Realty and Godrej Properties.
“And somebody who is still invested in names like these should try and avoid selling in this panic market. As and when market recovers, HDIL should come to levels of around Rs 60,” he added.
According to analysts, the company is facing severe cash crunch. Most of promoters' shares are pledged and the stock fell sharply last month on concerns that promoters pledged shares were liquidated on margin calls pressure.
On Tuesday, Credit Analysis and Research Ltd revised its rating from CARE BBB+ (Triple B+) to CARE D to its non-convertible debentures issued by the company.
“The revision in the ratings of Housing Development and Infrastructure Limited (HDIL) reflects the ongoing delays in servicing its Non- Convertible Debentures obligations,” CARE said in a note.
HDIL closed 19.90 per cent lower at Rs 48.70. It has hit a record low of Rs 47.90 on the BSE and a high of Rs 61.00 in trade today. The stock has plunged over 50 per cent so far in the year 2013 as compared to 2.79 per cent fall in the BSE Sensex.
The company has eroded 56 per cent of investor’s wealth so far in the year 2013, as of March 20 data.
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In response to the CARE ratings downgrade, the company issued a statement to exchanges stating that the company (HDIL) has not accepted the said rating and would like to reiterate the company’s strong financial and operational performance along with sound fundamentals. Sudip Bandyopadhyay, MD & CEO, Destimoney Securities Pvt. Ltd in an interview with ET Now advised investors to stay clear from real estate stocks including HDIL, Oberoi Realty and Godrej Properties.
“And somebody who is still invested in names like these should try and avoid selling in this panic market. As and when market recovers, HDIL should come to levels of around Rs 60,” he added.
According to analysts, the company is facing severe cash crunch. Most of promoters' shares are pledged and the stock fell sharply last month on concerns that promoters pledged shares were liquidated on margin calls pressure.
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The company has a debt around of Rs 4000 crore with interest liability of over Rs 500 crore.  |
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