Shares of IRB Infrastructure Developers which tanked as much as 7% in the early morning trades on Thursday on CBI’s action recovered partially but still trading in the negative territory. The Central Bureau of Investigation filed a charge sheet against IRB Infrastructure Developers over alleged illegal purchases of government land. “The Central Bureau of Investigation has filed a charge sheet today with the Sessions Court, Pune in the matter if an alleged illegal purchase of government land in village Pimploli and nearby, Taluka Maval, District Pune by Aryan Infrastructure Investments Pvt Ltd (AIIPL), a subsidiary of M/s IRB Infrastructure Developers Ltd,” IRB Infrastructure Developers said in an exchange filing.
Following the CBI action, the stock of IRB Infrastructure Developers slipped 7.28% to hit an 11-month low of Rs 194.7, while, later in the day, the stock pared off partial losses but was still trading 3.1% down at Rs 203.5 on BSE. IRB Infrastructure denied all allegations made against its CMD Virendra D Mhaiskar in the matter and said that the company is “fully complied with the law of the land”. Amid the heavy trading volumes, more than 1.65 crore shares of IRB Infrastructure exchanged hands on both BSE and NSE with about 1.55 crore on NSE alone, as at 3 pm.
“The company and its officials have been fully co-operating with the authorities during the course of the investigation and have provided all information and documents upon request,” IRB Infrastructure said. “We believe that this event should not have any material impact on the business and operations of the company,” IRB Infrastructure added. The research and brokerage firm HSBC downgraded its rating on the stock to “hold” from “buy” and also slashed price target to Rs 200 rupees from Rs 331.
Meanwhile, Sensex and Nifty opened almost unchanged in green but quickly extended the gains on Thursday on the back of value buying after an 8-day negation which led the key benchmark indices to drop by 3%. BSE Sensex jumped 316.07 points to hit the day’s high of 32,913.25 while NSE Nifty edged up 110.65 points to mark the day’s high at 10,154.75. Investors seemed to have taken a sigh of relief after macroeconomic data-packed week ended yesterday with RBI fifth bi-monthly monetary policy keeping the repo rate unchanged at 6%.