HDIL dismisses CARE ratings, stk at 52-wk low, down 50% YTD

Mumbai-based real estate developer Housing Development and Infrastructure's (HDIL) shares hit a new 52-week low of Rs 48.75 on Wednesday after credit agency Credit Analysis and Research (CARE) downgraded the company's non-convertible debentures (NCDs) citing delay in servicing debt obligations.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead GrowMyMoney SME Special
moneycontrol.com

Home » News » Business

Mar 21, 2013, 09.13 AM | Source: CNBC-TV18

HDIL dismisses CARE ratings, stk at 52-wk low, down 50% YTD

Mumbai-based real estate developer Housing Development and Infrastructure's (HDIL) shares hit a new 52-week low of Rs 48.75 on Wednesday after credit agency Credit Analysis and Research (CARE) downgraded the company's non-convertible debentures (NCDs) citing delay in servicing debt obligations.

Like this story, share it with millions of investors on M3

HDIL dismisses CARE ratings, stk at 52-wk low, down 50% YTD

Mumbai-based real estate developer Housing Development and Infrastructure's (HDIL) shares hit a new 52-week low of Rs 48.75 on Wednesday after credit agency Credit Analysis and Research (CARE) downgraded the company's non-convertible debentures (NCDs) citing delay in servicing debt obligations.

Post Your Comments

Share Cancel

Mumbai-based real estate developer Housing Development and Infrastructure's (HDIL) has asked Credit Analysis and Research (CARE) to review its rating downgrade after the company's stock hit a new 52-week low of Rs 48.75 on Wednesday.

The credit rating agency CARE had downgraded the company's non-convertible debentures (NCDs) citing delay in servicing debt obligations. 

CARE downgraded HDIL's NCDs and short-term non-convertible debentures worth over Rs 2,000 crore to 'D'. The stock crashed 21 percent on Wednesday and has fallen 50 percent year to date. D rating indicates that the instrument has defaulted or is likely to default soon.

"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 said in a statement.

CARE's rating downgrade comes after a cash flow crisis HDIL faced in February HDIL defaulted on the interest payment liability on NCDs worth Rs 2095 crore in February because service tax officials had temporarily frozen its bank accounts in lieu of Rs 8 crore dues. HDIL has finally made an interest payment of Rs 2 crore in the first week of March, reports CNBC-TV18's Priyanka Ghosh.

Now HDIL is working on getting its finances in shape as soon as possible. One of these steps include repaying Punjab National Bank a sum of Rs 150-Rs 180 crore rupees by end of this month. The company plans to use proceeds from sale of 2-acres land in Andheri for this transaction.  

Last year HDIL had sold 2 acre land parcel to Adani Enterprises for Rs 900 crore. Out of the total proceeds, Rs 400 crore was booked in the last quarter. 

The company is looking for more ways to finance its mammoth Rs 4,000 crore debt and aims to bring it down by Rs 1,000 crore rupees over the next 12 months.

Analysts believe that HDIL needs to work fast, so that investor confidence is regained. The stock had witnessed a major sell-off last month after the promoters sold 1.2 percent stake to fund meet its payment obligation towards a land purchase deal.

Ads by Google

Buy, Hold, Sell ? Hear it first on M3
HDIL dismisses CARE ratings, stk at 52-wk low, down 50% YTD

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login