JM Financial
Unitech, HDFC tank 2% each after share sale to JMFARC
Following the development, shares of Unitech tanked 2.17 per cent to hit a low of Rs 4.49 on BSE.ETMarkets.com | November 21, 2016, 13:02 IST
NEW DELHI: Shares of Unitech and housing finance company HDFC dropped 2 per cent each in Monday's trade after HDFC sold the defaulting real estate firm's outstanding loan of Rs 869 crore to JM Financial Asset Reconstruction Company (JMFARC).
"In the recent past, the Unitech group has faced sluggishness in sales of apartments. This has affected cash flow of the group, which has in turn had an adverse impact on the progress of construction and resulted in irregular loan servicing," HDFC said in a BSE filing.
Following the development, shares of Unitech tanked 2.17 per cent to hit a low of Rs 4.49 on BSE.
According to a BSE filing, JM Financial paid HDFC Rs 155 crore upfront and issued security receipts amounting to Rs 705 crore, which will be redeemable over the period of construction. All projects are located in prime locations and are financially viable, but require additional funding, HDFC said.
The stock fell 2.23 per cent to Rs 1,223 on BSE.
"JMFARC will arrange for funds to support and kickstart these projects. The progress of these projects and the resultant cash flow will thereafter be monitored closely," it said.
Tags : Industry, Unitech, JM Financial, HDFC, BSE