HDIL shares crash after vice-chairman sells stake

Shares in Housing Development & Infrastructure Ltd (HDIL) crashed on Wednesday after vice-chairman and managing director Sarang Wadhawan sold a partial stake in the company.

HDIL shares closed 14.33 per cent lower at Rs 96.25 on the Bombay Stock Exchange. The sharp selling in the stock pulled the BSE Realty index down, which closed 2.34 per cent lower.

HDIL said on Tuesday that Mr Wadhawan sold 50 lakh shares worth Rs 57 crore in secondary markets, reducing his stake to 0.99 per cent from 2.19 per cent.

Speaking to NDTV Profit, Mr Wadhawan accepted that promoters generally don't sell shares in the open market, but said the stake sale was to fund a land acquisition.

"One tranche of a land acquisition we had undertaken was due and if the tranche was not paid off, we would have a legal case on our hands," Mr Wadhawan told NDTV Profit.

HDIL promoters currently hold 30-36 per cent in the company, Mr Wadhawan said. However, 96 per cent of these shares are pledged, he added.

Mr Wadhawan said none of the pledged shares have been sold or will be sold in the future.


(With inputs from Reuters)