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HDIL share hits all-time low as NCLT admits insolvency resolution plea

Housing Development and Infrastructure share price crashed 20 per cent to hit the lowest circuit at Rs 8.78 on the BSE. Moreover, it touched an all-time low on BSE and NSE

twitter-logo BusinessToday.In   New Delhi     Last Updated: August 21, 2019  | 17:57 IST
HDIL share hits all-time low as NCLT admits insolvency resolution plea
HDIL shares plunged 20 per cent to hit an all-time low of Rs 8.78 on the BSE on Wednesday

Shares of cash-strapped Housing Development and Infrastructure Ltd (HDIL) plunged 20 per cent to hit an all-time low of Rs 8.78 on the Bombay Stock Exchange (BSE), its highest daily percentage loss since October 2008, after the real estate firm was admitted under the provisions of Insolvency and Bankruptcy Code (IBC).

National Company Law Tribunal (NCLT) on Tuesday passed an order that debt-laden HDIL will face insolvency proceedings under the provisions of the IBC. The NCLT order came in response to a plea filed by public sector lender Bank of India.

Bank of India had filed an application with the Mumbai bench of the NCLT after the realtor failed to repay dues of around Rs 522 crore. Besides Bank of India, HDIL also faces resolution pleas by Corporation Bank, Syndicate Bank, Indian Bank, and Dena Bank, according to a report by The Economic Times.

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In a filing to the BSE, the Mumbai-based firm said it has been admitted under the provisions of Insolvency and Bankruptcy Code as per order passed by NCLT pursuant to an application filed by Bank of India under Section 7 of IBC.

The company also informed the exchange that it plans to challenge the NCLT order, adding that it is under the process to file an appeal to National Company Law Appellate Tribunal (NCLAT).

"The company is under the process to file an appeal to NCLAT against the order passed by National Company Law Tribunal," HDIL said in the regulatory filing.

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Weighed down by the development, Housing Development and Infrastructure share price crashed 20 per cent to hit the lowest circuit at Rs 8.78 on the BSE. Moreover, it touched an all-time low on BSE and NSE.

The stock also saw a spurt in volume as 10.38 lakh shares changed hands over the counter as compared to two-week average volume of 1.52 lakh shares on the BSE.

In a similar trend, stock of Housing Development and Infrastructure fell as much as 20 per cent to settle at a record low of Rs 8.80 apiece on the National Stock Exchange.

Edited by Chitranjan Kumar

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