Housing Development and Infrastructure (HDIL) shares fell as much as 17 per cent to a fresh 52-week low of 47 on Wednesday. Including today’s selloff, the stock has fallen around 44 per cent in last four trading sessions. Selloff in the HDIL shares started after the company on August 3 said that National Company Law Tribunal under Section 7(2) of Insolvency and Bankruptcy Code, 2016 has admitted an application from Union Bank of India for insolvency proceedings against its wholly owned subsidiary company, Guruashish Constructions Private Limited.
The Company Law Tribunal has appointed insolvency resolution professional to carry out the functions as mentioned in the section 7(2) of section of the Insolvency and Bankruptcy Code, 2016, the company said.
HDIL further said: “The Company will file an apt reply and will take an appropriate measure, as and where required in the proceedings with the Tribunal and the Appellate Authorities.”
The selloff in HDIL shares dragged the Nifty Realty sub-index lower. The Nifty Realty sub-index was down over 2 per cent.
Meanwhile, traders also sold HDIL shares on caution ahead of announcement of its June quarter earnings. Mumbai-based HDIL will report its earnings on Friday.
As of 10.09 am, HDIL shares recovered most of the intraday losses and were down 2.12 per cent at Rs 55.20, compared to 0.26 per cent decline in the broader Nifty.