Stock fell as much as 30 per cent in the intra-day trade on BSE
Mumbai: The shares of DLF plunged sharply on the domestic bourses after the SEBI on Monday barred the company and its key promoters and executives from accessing the capital market for three years. The stock fell as much as 30 per cent in the intra-day trade on BSE before closing the day at Rs104.95, down 28.46 per cent or Rs 41.75. Following the sharp fall, investors wealth eroded by over Rs7,000 crore on Tuesday.
“We believe this would effectively prohibit the company from dealing in securities, which we believe will include issue of equities, REITs, debentures and other such marketable securities. This may also prevent the proposed merger of DLF Cyber City Developers Ltd (DCCDL) into DLF,” said Aashiesh Agarwaal and Akshay Rao, research analysts at Edelweiss Financial Services.
Meanwhile there is a demand for the removal of the DLF stock from the NIFTY index stocks. Amit Tandon, MD, IiAS said “Sebi imposed the ban on the promoters in order to protect the shareholders. Being part of the CNX Nifty, DLF attracts several equity retail and institutional shareholders. Index fun-ds will also be required to hold the stock in the almost the same measure as its weight in the index. So it is logical that this anomaly be removed by removing the stock as a constituent of a principal index”.
( Source : dc correspondents )
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