HDIL to appeal against NCLT order
Realty company Housing Development and Infrastructure Limited (HDIL) has informed the stock exchange that it has received an order to admit the company under Insolvency and Bankruptcy Code (IBC) from Bankruptcy Court.
The company said that it is under the process to file an appeal to National Company Law Appellate Tribunal (NCLAT) against the order passed by National Company Law Tribunal.
Last week National Company Law Tribunal (NCLT) had passed an order that HDIL will face insolvency proceedings under the provisions of the IBC. The NCLT order came in response to a plea filed by public sector lender Bank of India.
The company had informed the stock exchange that Housing Development and Infrastructure Limited, (the "Company") has been admitted under the provisions of The Insolvency Bankruptcy Code, 2016 ('IBC') in term of order dated August 20, 2019, passed by Hon'ble National Company Law Tribunal, Special Bench ('NCLT'), pursuant to an application filed by the Bank of India under Section 7 of IBC.
Shares of Housing Development and Infrastructure (HDIL) had plunged 20 percent intraday on August 21 after NCLT admitted the company under the Insolvency Bankruptcy Code, 2016 (IBC).
Bank of India had filed an application with the NCLT after the debt-laden realty firm failed to repay dues of around Rs. 522 crore. Meanwhile, there are concerns among the market participants as HDIL has received resolution pleas from Corporation Bank, Syndicate Bank, Indian Bank, and Dena Bank under Section 7 of IBC.
HDIL had reported a 67 per cent decline in its consolidated net profit to Rs. 8.24 crore for the first quarter of this fiscal against a net profit of Rs. 24.69 crore in the year-ago period. Its total income fell to Rs. 96.50 crore during Q1FY20 from Rs. 171.35 crore in Q1FY19.
The stock of HDIL closed at Rs. 6.40, up by Rs. 0.58 or 9.97 per cent on the BSE. The stock had opened at Rs. 5.94 and made an intraday high of Rs. 6.40 and intraday low of Rs. 5.81. The stock had hit 52-weeks low at Rs. 5.75 on Monday.