Upper circuit alert: This realty stock rallied over 11 per cent after a steep correction yesterday

This rally comes after a fall of more than 15 per cent yesterday.

Indiabulls Real Estate Ltd (IBREALEST), an S&P BSE 500 company, rallied by more than 11 per cent today after a decline of 15 per cent yesterday.  

Why the fall? 

Yesterday, news broke out that the Delhi and Mumbai divisions of Enforcement Directorate (ED) jointly conducted searches at Indiabulls Housing Finance Ltd (IHFL) and its office Indiabulls Finance Centre in Mumbai.  

This search was based on an Enforcement Case Information Report (ECIR) filed by the Enforcement Directorate under the Prevention of Money Laundering Act, 2002 (PMLA) against Indiabulls Housing, its promoter Sameer Gehlaut, and several other linked companies and individuals. 

Following this, the company’s share price took a plunge. The company’s share price, which stood at Rs 121.25 on February 18, 2022, fell sharply by 15 per cent to Rs 103 on Monday.  

Later, on Monday evening, IBREALEST provided clarification concerning this matter. The press release stated that “the ED sought some information from IHFL regarding certain of their clients and it is understood that the necessary data has been provided to ED by IHFL and its officials.” 

Further, the press release also clarified that the said ED investigation did not pertain to Indiabulls Real Estate Limited and has no bearing on the business and operations of the company. 

Post this clarification, at 12.31 pm, the share price of Indiabulls Real Estate Limited was trading at Rs 115.25, an increase of 11.89 per cent from the previous day’s closing price of Rs 103 on BSE.