Indiabulls Housing Finance share price falls 38% on concerns over merger with Lakshmi Vilas Bank

The share price of Indiabulls Housing Finance Ltd (IBHFL) crashed nearly 38% intraday to hit a fresh 52-week low today after Reserve Bank of India put private sector lender Lakshmi Vilas Bank under its prompt corrective action (PCA) plan. The development places the prospects of their prolonged merger into jeopardy.

Indiabulls Housing Finance stock opened today with a loss of 6.79% to Rs 363, also its day's high. Later, the stock crashed 37.8% and touched an intraday low as well as fresh 52-week low of Rs 240.10, against the last closing price of Rs 389.45 on BSE. The IBHFL stock traded in a wide range of Rs 122.2 today. The share has fallen nearly 30% in the last five sessions.

Lakshmi Vilas Bank share hits 5% lower circuit after RBI initiates prompt corrective action against lender

In terms of market depth, there were 97% sellers offering on the stock and 3% buying the stock. There are currently (as of 1120 IST), 0.19 lakh shares offered from buyers against 7.50 lakh shares on offer from sellers. The share trades lower than its 30, 50, 150 as well as 200-day simple moving averages (SMA).

Volume-wise, shares amounting to 20 lakh on BSE and 455.5 lakh on NSE were currently changing hands, both above the 5,10, 20-day average volume traded. The stock saw high intraday volatility of 12.72%. The fall is in line with the overall 'Finance - Housing' sector, declining 2.3% intraday.

Similarly, Lakshmi Vilas Bank share price hit 5% lower circuit at the day's low of Rs 34.75 on BSE.

RBI places Lakshmi Vilas Bank under PCA; may affect its merger with Indiabulls Housing Finance

The weakness in IBHFL stock can also be attributed to Delhi High Court (HC) issuing a notice in response to a plea for probe into financial irregularities by Indiabulls Housing Finance last week. Delhi HC has also sought a response from Centre and the RBI on the plea seeking a probe by a Special Investigation Team (SIT) into the alleged illegalities, siphoning of funds and violations committed by the promoters of Indiabulls Housing Finance Ltd (IBHFL).

Earlier this month, Citizens Whistle Blower Forum filed public interest litigation (PIL) in the Delhi High Court alleging that IBHFL through its promoters and their various group firms and subsidiaries, has been advancing dubious loans to companies owned by large corporate groups.

Indiabulls Group stocks fall after Delhi HC seeks response from govt, RBI on PIL against IBHFL promoters

Reacting to the Delhi HC notice, other Indiabulls group stocks were also trading in the negative zone.

Shares of Indiabulls Housing Finance Ltd were trading 38% lower at Rs 240.10 on BSE, whereas Indiabulls Real Estate shares made the day's low by falling 10% to Rs 45.5 on BSE. Similarly, Indiabulls Integrated Services Ltd was down 4.98% to Rs 129.65 intraday, while Indiabulls Ventures shares traded almost 20% lower at Rs 123 on the BSE.

HC seeks Centre, RBI's response on plea for probe into alleged misappropriation of funds by Indiabulls

As of 1200 IST, the shares price of IBHFL was trading 30% or 119 points lower at Rs 270.35 on the BSE.

By Rupa Burman Roy