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HDIL shares hit 52-week low as NCLT admits firm under insolvency proceedings

Updated : August 21, 2019 11:55 AM IST

HDIL stated that the company will approach the National Company Law Appellate Tribunal (NCLAT) against the order passed by NCLT.

The NCLT on June 4 had warned given HDIL four weeks time to pay Rs 98 crore to Bank of India and warned the company that faliure to do so would initiate insolvency proceedings.

HDIL shares hit 52-week low as NCLT admits firm under insolvency proceedings

Shares of Housing Development and Infrastructure Ltd (HDIL) slumped as much as 20 percent to a 52-week low of Rs 8.80 on Wednesday.

HDIL on Tuesday said it has been admitted under provisions of insolvency bankruptcy code passed by National Company Law Tribunal (NCLT) pursuant to an application filed by the Bank of India. The Mumbai-based company further said it is under the process to file an appeal to National Company Law Appellate Tribunal (NCLAT) against the NCLT order.

On June 5, the bankruptcy court had directed HDIL to pay Rs 98 crore to Bank of India within four weeks. HDIL owes around Rs 520 crore to Bank of India and had agreed to pay it in tranches.

HDIL, as per its 2017-18 annual report, has a total debt of around Rs 2,400 crore.

At 11.35 AM, HDIL shares were down 20 percent at Rs 8.80 per share, while the broader index Nifty was down 0.13 percent.

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