- Hot Pursuit
DLF jumps on bargain hunting
DLF jumped 4.39% at Rs 222.35 at 15:04 IST on BSE on bargain hunting after the stock slumped 11.89% in the preceding three sessions to Rs 213 on 10 October 2012 from a recent high of Rs 241.75 on 5 October 2012.
Meanwhile, the BSE Sensex was up 157.27 points, or 0.84%, to 18,788.37.
On BSE, 13.46 lakh shares were traded in the counter as against an average daily volume of 6.63 lakh shares in the past one quarter.
The stock hit a high of Rs 222.60 and a low of Rs 212 so far during the day. The stock had hit a 52-week high of Rs 261.35 on 22 February 2012. The stock had hit a 52-week low of Rs 169.55 on 4 June 2012.
The stock had outperformed the market over the past one month till 10 October 2012, rising 5.42% compared with the Sensex's 4.86% rise. The scrip had, however, underperformed the market in past one quarter, sliding 0.84% as against Sensex's 5.75% rise.
India's largest real estate company by market capitalisation has an equity capital of Rs 339.71 crore. Face value per share is Rs 2.
The recent decline in shares of DLF was triggered by concerns of corporate governance after anti-corruption activist Arvind Kejriwal charged the company of favouring Robert Vadra, son-in-law of Congress chief Sonia Gandhi, with easy loans for some undue gains.
India Against Corruption (IAC) activist-turned-politician Arvind Kejriwal on Tuesday, 9 October 2012, stated that DLF had received large favours from the Congress-ruled Haryana state government over the past few years and added that the company's business links with Congress chief Sonia Gandhi's son-in-law Robert Vadra were responsible for the favourable treatment.
Besides, Kejriwal claimed that Vadra's company, North India IT Parks Pvt Ltd, had acquired 50% equity in DLF SEZ Holding Pvt Ltd on 13 October 2008 for Rs 25 lakh and sold it back to DLF in 2009. It must be found out at what price Vadra sold the 2.5 lakh shares he bought for Rs 10 each. It must be at a much higher rate, Kejriwal said.
DLF immediately issued a statement saying that the company has neither sought nor enjoyed any special favours from the state government of Haryana and all developments of DLF undertaken over the last four decades are strictly in compliance with all applicable laws, rules and regulations with an adherence to the highest ethical standards.
DLF clarified that it got 350 acres of land in Gurgaon through an international competitive tender and had not purchased land in Manesar as alleged by Kejriwal. The firm said Robert Vadra's North India IT Parks acquired 50% stake in DLF SEZ Holdings in 2008 at a face value of Rs 2.5 lakh and the stake was bought back from it in 2009 at the same price. No benefit or gain was made by Vadra or DLF, the company's statement said. Vadra neither had nor has any interest in the various SEZs of DLF in any manner, DLF said.
Last week, Kejriwal had accused DLF of giving unsecured interest-free loans to Vadra and his companies, using which the latter bought apartments in some premium residential projects built by the company at hefty discounts and also bought into a hotel joint venture. He charged Vadra of profiting to the tune of Rs 500 crore from the DLF dealings and suggested that this was quid pro quo for helping the company. Soon after the allegations of improper dealing with Vadra, DLF on Saturday, 6 October 2012, had released a statement explaining its dealings with Vadra to show that they were above board.
DLF's consolidated net profit fell 18.3% to Rs 292.79 crore on 10.1% decline in net sales to Rs 2197.71 crore in Q1 June 2012 over Q1 June 2011.
DLF's primary business is development of residential, commercial and retail properties.
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