HDIL shares plunge 20% on downgrade by Care Ratings

Mar 21 2013, 00:41 IST
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SummaryCare Ratings told The Indian Express that they offered their rating to instruments amounting to Rs 2,095.4 crore and they have revised their ratings as an investor informed them about delays in servicing of obligations.

Shares of Housing Development and Infrastructure Limited (HDIL) tanked by 20 per cent on Wednesday following Care Ratings’ move to downgrade non-convertible debentures of the company amounting to Rs 2,095.4 crore to the default category ‘D’.

Care Ratings told The Indian Express that they offered their rating to instruments amounting to Rs 2,095.4 crore and they have revised their ratings as an investor informed them about delays in servicing of obligations. “One of the investors has informed us that there is a delay in the servicing of obligations which led us to take an action on the rating assigned to such instruments,” said Mahendra Patil, analyst at Care Ratings.

“There was a delay in the interest payments as the company’s bank accounts being frozen by service tax department but we have made the payments now. We have submitted all details to Care and have requested to restore the ratings and are hopeful that it will be done in their next meeting,” said Hari Prakash Pandey, VP finance & investor relations at HDIL.

Share price of the firm fell by 21.2 per cent from Rs 60.8 to Rs 47.9 before recovering to close the day at Rs 48.7 with a fall of 19.9 per cent.

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