DLF shares tumble nearly 20% after SC notice on non-disclosure of information in QIP doc

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Published: August 22, 2019 12:00:07 PM

DLF Ltd’s shares hit their 31-month low on Thursday after a report that the Supreme Court issued a notice to the real-estate company for not disclosing relevant information in its QIP document.

dlf, dlf firm. real estate sector, real estate industryDLF shares fall significantly after reports of receiving SC notice on non-disclosure of key information in its QIP document

DLF Ltd’s shares hit their 31-month low on Thursday after a report that the Supreme Court issued a notice to the real-estate company for not disclosing relevant information in its QIP document. Shares of DLF Ltd slumped nearly 20 per cent in the early trade to Rs 137.75 per share after Hindu Business Line reported about the notice. At 11:18 AM, the shares of DLF were seen trading at Rs 144.60 per share, around 16 per cent lower than the previous settlement. 

Earlier also, the petitioner KK Sinha, had filed a complaint with SEBI that the real estate major had failed to disclose key cases in relation to the violation of the Haryana Land Ceiling Act, 1972, where adverse orders were passed by the Punjab and Haryana High Court, according to media reports. On Sinha’s complaint, the market regulator had banned the promoters from the market for three years and also imposed a fine of Rs10 lakh.

However, Ashok Tyagi, Wholetime Director, DLF said the company had made all material disclosures had in the QIP and the complaint was about 5-6 acres of land by a company which is not company’s arm. In an interaction with CNBC 18, Tyagi said the company received the notice from Supreme Court a month ago which does not ask us for any disclosures. The apex court asked DLF and SEBI whether the complainant should be impleaded in the case, he further added. 

According to Sameer Kalra, Founder and Research head with Samara Capital, it is negative for the company which might lead to a big penalty along with further legal inquiry instead of the small penalty which was imposed by SEBI. He has recommended a SELL on the company.

ICICI Securities has recommended a BUY on DLF’s stock with a target price of Rs 252 per share. Post recommencing sales bookings in November 2017 (post-RERA), DLF has been able to clock quarterly net sales bookings of Rs6-7bn and achieved Rs24bn of net sales in FY19, the brokerage firm said. “Guidance for Rs27bn of net sales bookings in FY20E, a 10% YoY increase led by faster monetisation of Camelias super-luxury project in Gurugram and improved demand outlook in non-NCR projects,” it further noted. 

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