Shares in India’s largest real estate developer DLF on Tuesday plummeted 28.46 per cent to Rs 104.95 on the Bombay Stock Exchange after the Sebi barred the company and six of its top officials, including chairman K P Singh, from the capital market. DLF shares plunged by 28 per cent to Rs 105.80 on the NSE.
While the stock witnessed a volume of 8.67 crore shares valued at Rs 967 crore on the NSE, the BSE witnessed 1.68 crore shares changing hands. Investors lost Rs 7,439 crore as DLF’s market capitalisation plunged to Rs 18,701 crore.
Market sources said the stock, which hit a 52-week low of Rs 102.85 on the NSE, faced hammering and dumping by retail and institutional shareholders alike. The Sebi order has come at a time when the company has come under flak for its alleged real estate dealings with Robert Vadra.
The Sebi banned DLF and its top officials from the market for “deliberate suppression of material information” during the company’s initial public offering in 2007. The company said it would “defend itself to the fullest extent against any adverse findings.”
Brokerage Barclays said in its equity research report, “We believe this ruling (by Sebi) along with other recent adverse regulatory rulings and weak demand environment does not augur well for DLF.”
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