Mumbai-based real estate firm Housing Development and Infrastructure (HDIL) bounced back with gains of more than 3 percent on Monday after sharp rall in previous four sessions as the research firm Macquarie has put an outperform rating on the stock with a target price of Rs 168.
However, investors need more clarity from the management on land transactions and other concerns before confidence is restored, Macquarie said.
Shares plunged more than 38 percent in previous sessions on concerns over land transactions and selling of stake by the promoter. Also Read - HDIL denies bankruptcy talks
Vice chairman and managing director Sarang Wadhawan sold 5 million shares worth Rs 57 crore in secondary markets on Tuesday, reducing his stake to 0.99 percent from 2.19 percent. "We are aiming at debt reduction; this move was primarily to fund the land acquisition we had entered into about a year back," Wadhwan explained to CNBC-TV18 on Wednesday. HDIL’s debt currently stands at Rs 4,000 crore.
On Wednesday, Citigroup Global Markets Mauritius Private Limited sold 49,30,592 shares of HDIL at Rs 100.60 on the NSE while on Thursday, Credit Suisse (Singapore) sold 67,37,381 shares at Rs 78.41 a share.
At 10:51 hours IST, shares rose 3.28 percent to Rs 77.10 on Bombay Stock Exchange.