HDIL Sees Shares Falling by 20%
Housing Development and Infrastructure Ltd (HDIL)(HDIL. NS) recently realized a 20% fall in its shares. On Wednesday, the company said that a local credit agency has been called by it now so that a ratings downgrade could be reviewed.
HDIL's non-convertible debentures (NCDs) were reportedly downgraded on the day by Credit Analysis and Research Ltd (CARE) (CREI. NS). CARE, the credit agency, had cited ongoing delays in servicing debt obligations.
The shares of HDIL came down at 48.65 rupees. And with the same, the company hit a new 52-week low. As per the findings, debt payments were not mentioned by the real estate developer.
Short-term non-convertible debentures of the real estate developer were also demoted by CARE. It has been found that the stock went down by some 50% year to date.
It is being said that D rating was a hint that the instrument either had defaulted or it was at the edge of being defaulted soon. The default was on the interest payment liability in February on NCDs by HDIL. The same was worth Rs
2095 crore and the reason of defaulting was temporary freeze of bank accounts of HDIL by service tax officials.
"The company has not accepted the said rating assigned by CARE and would like to reiterate the company's strong financial and operational performance and sound fundamentals", HDIL was quoted as saying.