Shares of Indiabulls group companies plummet

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Published: September 28, 2019 1:26:55 AM

Interestingly, the cumulative market value of the group, which stood at over Rs 1 lakh crore in August 2018, dwindled by 74% to Rs 29,397 crore as on Friday.

Further, the company statement said that these two business groups have no loans or investments of any kind whatsoever in any promoter companies.

Shares of Indiabulls group companies plummeted on Friday after the Delhi High Court agreed to hear a petition that alleged financial irregularities in the group entities. Shares of Indiabulls Housing Finance slid 6.1% on BSE and have given up more than half of their value so far in 2019. While the stock of Indiabulls Real Estate tanked nearly 10% to hit its lowest level since March 2016, Indiabulls Ventures slumped 16.9% to mark its biggest single-day fall in over a decade.

Other group companies such as Indiabulls Integrated Services and SORIL Infra Resources tested their lower circuit of 5% on Friday. Interestingly, the lower circuits for both stocks came after witnessing 12 consecutive sessions of upper limits through Thursday.
The fall in stock prices eroded the combined market capitalisation of group companies by Rs 3,234 crore on Friday, with Indiabulls Ventures and Indiabulls Housing Finance losing by Rs 1,818 and Rs 1,084, respectively. Interestingly, the cumulative market value of the group, which stood at over Rs 1 lakh crore in August 2018, dwindled by 74% to Rs 29,397 crore as on Friday.

The Delhi High Court has also sought responses of the Centre and the Reserve Bank of India (RBI) on a plea that sought an SIT investigation into the alleged illegalities, siphoning of funds and violations committed by the promoters of Indiabulls Housing Finance (IBHFL).

However, Indiabulls has denied allegations in court, saying that the false and fabricated allegations made against the company in respect of loans granted to four business groups fall flat merely on the fact that two of these loans to business groups are fully closed with no outstanding dues, and loans to two other business groups are secured loans granted in the normal course of business and are being serviced regularly as per repayments schedule.

Further, the company statement said that these two business groups have no loans or investments of any kind whatsoever in any promoter companies.

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