DLF rose 3.91% to Rs 131.60 at 9:33 IST on BSE on reports the Securities Appellate Tribunal allowed the company to redeem Rs 1806 crore in mutual fund holdings in order to service outstanding loans.
Meanwhile, the BSE Sensex was down 32.81 points, or 0.12%, to 27,883.07.
On BSE, so far 5.60 lakh shares were traded in the counter, compared with an average volume of 20.30 lakh shares in the past one quarter.
The stock hit a high of Rs 132.80 and a low of Rs 130.70 so far during the day. The stock hit a 52-week high of Rs 242.80 on 9 June 2014. The stock hit a 52-week low of Rs 100 on 16 October 2014.
The stock had underperformed the market over the past one month till 5 November 2014, falling 15.79% compared with 5.07% rise in the Sensex. The scrip had also underperformed the market in past one quarter, sliding 38.37% as against Sensex's 7.75% rise.
The large-cap company has an equity capital of Rs 356.39 crore. Face value per share is Rs 2.
In an interim relief against Securities and Exchange Board of India (Sebi) order, the Securities Appellate Tribunal (SAT) on Wednesday, 5 November 2014, reportedly allowed DLF to redeem Rs 1806 crore in mutual fund holdings in order to service outstanding loans.
After reportedly hearing an appeal for interim relief by DLF, SAT allowed the company to redeem mutual funds worth Rs 767 crore in the current month and further funds worth Rs 1039 crore in December 2014.
DLF had sought permission to redeem funds locked in mutual funds after being slapped with the market regulator's ban last month from accessing the capital market for 3 years.
The company had reportedly made the request through an affidavit submitted on Monday, 3 November 2014, to SAT. DLF, which has debt of over Rs 20000 crore, said in an affidavit it needed Rs 1806 crore to make interest and principal repayments for loans availed by the company and 10 of its subsidiaries till 31 December 2014, reports added.
Sebi had notified on 13 October 2014, that it has barred realty major DLF as well as its top executives, including chairman and main promoter K P Singh, from buying, selling or otherwise dealing in securities, directly or indirectly, in any manner, whatsoever, for 3 years. However, the regulator did not impose any monetary penalty. The regulatory action stemmed 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 included 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.
DLF will announce Q2 results on 13 November 2014. 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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