HDIL extends fall as NCLT admits Union Bank of India's plea against arm

The stock slipped 7% to Rs 77, extending its Thursday's 3% decline on BSE.

Housing Development & Infrastructure (HDIL)  slipped 7% to Rs 77, extending its Thursday’s 3% decline on BSE, after the real estate developer said that the National Company Law Tribunal (NCLT) has admitted Union Bank of India’s plea against subsidiary.

“The National Company Law Tribunal has admitted an application from Union Bank of India for its wholly-owned subsidiary Guruashish Constructions Private Ltd under the Insolvency and Bankruptcy Code,” HDIL said in BSE filing.

NCLT had appointed insolvency resolution professionals to carry out the functions, it added.

The company will file a reply and take appropriate measures, as and where required in the proceedings with the Tribunal and the Appellate Authorities, HDIL said.

In past two months, the stock has underperformed the market by falling 18% as compared to 10% rise in S&P BSE Realty index and 3% gain in the S&P BSE Sensex.

Meanwhile, the board of directors of HDIL will meet on Friday, August 11, 2017, to consider unaudited financial results of the company for the quarter ended on June 30, 2017.

At 12:22 pm; the stock was trading at Rs 78 on back of heavy volumes. A combined 15.88 million shares changed hands on the counter on BSE and NSE so far.