Shares of Hindustan Construction Company slumped over 17 per cent today amid reports that its subsidiary Lavasa Corp is headed for bankruptcy, which the company has denied as misleading and without any basis.
The stock plummeted 17.30 per cent to close at Rs 23.90 on BSE. Intra-day, it plunged 19.20 per cent to Rs 23.35.
On NSE, shares of the company slumped 17 per cent to end at Rs 23.90.
The company's market valuation went down by Rs 507 crore to Rs 2,426.96 crore.
In terms of equity volume, 103.06 lakh shares of the company were traded on BSE and over 9 crore shares changed hands on NSE during the day.
Earlier in the day, BSE had sought clarification from the company on the media reports.
Later, the company in a filing to BSE said, "In the said connection, we wish to clarify that the said news item in a section of media is misleading and without any basis."
"Please note that Lavasa Corporation has been working jointly with the consortium of lenders for a financial solution for Lavasa. Due to RBI's recent notification on IBC, the process has been slowed down till further clarity on the finer nuances of the revised framework emerge," it said.
Lavasa is hopeful of a comprehensive solution for its debt recast once the revised framework is deliberated to the satisfaction of all involved. Lavasa's top priority is to safeguard the interests of all stakeholders, including the home buyers, who have believed in and supported the project, the filing added.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
RECOMMENDED FOR YOU