Shares of DLF settled for the day with losses of nearly one per cent, eroding as much as Rs. 214 crore from its market-cap, amid SAT adjourning its hearing on a plea by the realty firm against a Sebi order.
DLF today appealed for an interim relief from SAT to allow it to redeem thousands of crores worth funds locked in mutual funds and other securities.
After hearing the petition filed by the country’s largest real estate developer last week, the Tribunal adjourned the matter till October 30, as it sought a response from capital markets regulator Sebi on DLF’s plea for an interim relief.
SAT was today going to hear DLF’s appeal against the Sebi order that barred the company and six top executives from accessing capital market for three years.
Reacting to the development, shares of the company dropped over four per cent to an intra-day low of Rs 115.90 on the BSE. During the day the stock recovered some lost ground and settled for the day at Rs 120.25, down nearly one per cent from its previous closing price.
Accordingly, the market capitalisation of the company declined by Rs. 214 crore to Rs. 21,427 crore.
In a major blow to DLF, Sebi had passed an order against the company for “active and deliberate suppression” of material information at the time of its IPO over seven years ago.
DLF’s initial public offer in 2007 had fetched Rs. 9,187 crore — the biggest IPO in the country at that time.
While the regulator did not impose any monetary penalty, the prohibition barred DLF and the six persons, from any sale, purchase or any other dealings in securities markets for a period of three years, including for raising funds.
This is one of the rare orders by Sebi that bars a bluechip and its top promoter/executives from market.