Realty developer Housing Development Infrastructure promoter sold shares to fund land buy

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 part payment for a 15-acre plot of Digvijay Mills at Byculla in central Mumbai. The management of HDIL confirmed this in response to a question raised during 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 minor stake sale by Wadhawan raising 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 second tranche of a land acquisition, without giving any more details. The company is expected to launch projects spread over total 8-10 million sq ft in the next 12-15 months, Hariprakash Pandey, vice-president ( finance), told analysts and investors at the conference call.