DLF rose 4.24% to Rs 109.40 at 11:56 IST on BSE on bargain hunting after the stock crashed 31.27% in the preceding three trading sessions to Rs 104.95 on Tuesday, 14 October 2014, from a recent high of Rs 152.70 on 9 October 2014.
Meanwhile, the BSE Sensex was down 4.02 points, or 0.02%, to 26,345.31.
On BSE, so far 83.97 lakh shares were traded in the counter, compared with an average volume of 13.75 lakh shares in the past one quarter.
The stock hit a low of Rs 100 so far during the day, which is also a record low for the counter. The stock hit a high of Rs 115.85 so far during the day. The stock hit a 52-week high of Rs 242.80 on 9 June 2014.
The stock had underperformed the market over the past one month till 14 October 2014, falling 40.34% compared with 2.63% fall in the Sensex. The scrip had also underperformed the market in past one quarter, sliding 49.46% as against Sensex's 5.37% rise.
The large-cap company has an equity capital of Rs 356.39 crore. Face value per share is Rs 2.
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Shares of DLF crashed 28.46% to Rs 104.95 on Tuesday, 14 October 2014, on the back of the stock market regulator imposing a three-year ban on DLF and its top executives from securities markets.
Stock market regulator Securities and Exchange Board of India (Sebi) notified on Monday, 13 October 2014, that it barred the realty major as well as its top executives, including chairman and main promoter K P Singh, from the securities market for 3 years.
The regulatory action stems from the DLF management's failure to disclose material information to investors during the firm's initial public offer (IPO) in 2007. DLF's IPO in 2007 had fetched Rs 9187 crore -- the biggest IPO in the country at that time.
Besides K P Singh, those barred from the markets include his son Rajiv Singh (vice chairman), daughter Pia Singh (whole time director), managing director T C Goyal, former CFO Ramesh Sanka and Kameshwar Swarup, who was executive director (legal) at the time of the company's public offer in 2007.
After its over four-year-long probe, Sebi found that a case of active and deliberate suppression of any material information so as to mislead and defraud the investors in the securities market in connection with the issue of shares of DLF in its IPO is clearly made out in this case.
In his 43-page order, Sebi's whole-time member Rajeev Agarwal also said that violations are grave and have larger implications on safety and integrity of the securities market.
While the regulator has not imposed any monetary penalty, the prohibition order would bar DLF and the six persons, from any sale, purchase or any other dealings in securities markets for a period of three years, including for raising funds.
The ban raised investor concerns about how the real estate major will service its debt. The company's debt reportedly stood at Rs 19802 crore at the end of June 2014.
Media reports suggested that Sebi's order can be challenged at Securities Appellate Tribunal.
DLF clarified before market hours on Tuesday, 14 October 2014, that the order passed by Sebi came to its notice only on 13 October 2014. The order is being reviewed by DLF and its legal advisors. DLF and its board wish to reassure its investors and all other stakeholders that it has not acted in contravention of law either during its initial public offer or otherwise. DLF and its board were guided by and acted on the advise of eminent legal advisors, merchant bankers and audit firms while formulating its offer documents. DLF will defend itself to the fullest extent against any adverse findings and measures contained in the Order passed by Sebi. DLF has full faith in the judicial process and is confident of vindication of its stand in the near future, the company added.
On a consolidated basis, DLF's net profit fell 29.5% to Rs 127.77 crore on 24.7% decline in total income to Rs 1851.60 crore in Q1 June 2014 over Q1 June 2013.
DLF's primary business is development of residential, commercial and retail properties.
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