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DLF Stocks Plummet 20%, Hit 31-Month Low After CEO Steps Down, SC Issues Non-Disclosure Notice

Image for representative purpose only (Reuters)

Image for representative purpose only (Reuters)

The stock fell 23 percent in three straight sessions to Rs 138.30, the lowest level since January 31, 2017. It was quoting at Rs 144, down Rs 27.60, or 16.08 percent on the BSE at 0952 hours.

Real estate giant DLF's shares fell by 19.4 percent intraday on Thursday to hit its 31-month low on August 22 after receiving a notice from the Supreme Court for non-disclosure of key information in Qualified institutional placement (QIP).

The stock fell 23 percent in three straight sessions to Rs 138.30, the lowest level since January 31, 2017. It was quoting at Rs 144, down Rs 27.60, or 16.08 percent on the BSE at 0952 hours.

SEBI had earlier barred DLF promoters from markets and imposed a penalty after a complaint by KK Sinha, who told the SC that DLF had failed to mention key cases regarding the violation of the Haryana Land Ceiling Act, 1972, where adverse orders were passed by the Punjab and Haryana High Court, and the matter is still pending with the SC.

Ashok Tyagi, wholetime Director of DLF said in an interview to CNBC-TV18, "All material disclosures had been made in the QIP and complaint is about 5-6 acres of land by a co which is not company's arm.".

Moreover, DLF Ltd patriarch K P Singh had stepped down as whole-time director on Monday, but will continue to be its non-executive Chairman, the realty firm said.

In a regulatory filing, DLF informed that shareholders' approval has been sought on a resolution through postal ballot for "appointment of K P Singh for continuation as a non-executive director (designated as Chairman of the company.)"

In an explanatory note, the real estate major said its shareholders in the company's AGM held on July 30, had approved the reappointment of Singh as a whole-time director designated as Chairman for a period of five years with effect from October 1, 2018.

However, the 88-year-old Singh during the AGM informed the shareholders that it might not be possible for him to continue as a Whole-time Director.

To consider the resignation of Singh, the DLF board met on July 30 and accepted his resignation as Whole-time Director designated as Chairman.

"However, the Board unanimously agreed that it is necessary for the company to continue to avail the benefit of Dr. Singh's invaluable experience and knowledge of the real estate business.

"At the request of the members of the Board, KP Singh, after much persuasion, has agreed to continue as Non-Executive Director designated as Chairman," the postal ballot notice said.

first published:August 22, 2019, 11:18 IST