HDIL hits a new low

HDIL is down in the dumps today, hitting a new low at Rs.26.10 and it remains strongly entrenched in the red, down over 11%. Its lower circuit limit is at Rs.24.55. Market cap is at Rs.1139 crore.

The stock is down once again for the same reason – promoters default on interest payment. Indiabulls Financial Services has alleged that promoters, Sarang and Rakesh Wadhwan, have failed to pay interest worth Rs 3.5 crore accrued on their personal loan worth Rs 46 crore. They need to this interest due for the last 3 months within the next six months. This is a personal loan and not taken by the company. But when the promoters start defaulting, naturally, it spells trouble for the company too. The company for the past few months has shown all signs of being cash strapped when the promoter sold his 1.2% stake and then defaulted on interest payment too. Matters got worse when in Q4, its MIAL project was terminated too.