E-Paper
DLF denies charge of non-disclosure of key information in QIP
The apex court has issued a notice to DLF based on a petition that also highlighted how it had suppressed key information regarding judicial proceedings against the largest chunk of its land bank in Haryana.
DLF Ltd, India’s largest real estate firm, said on Thursday it had received a notice from the Supreme Court a month ago, but denied allegations made in an application that said the developer didn’t disclose key information during its recent qualified institutional placement (QIP).
The apex court has issued a notice to DLF based on a petition that also highlighted how it had suppressed key information regarding judicial proceedings against the largest chunk of its land bank in Haryana.
DLF Ltd lost 15.91% to close at ₹144.30 per share on Thursday on the BSE, while the benchmark index Sensex lost 1.59% to close at 36,472.93 points and the BSE Realty Index lost 6.01% to close at 1,871.93 points.
According to a 21 August report by Hindu Business Line, DLF failed to disclose a material amalgamation that renders one of DLF’s flagship subsidiaries liable in matters arising out of court orders with regard to M/s Aaliyah Real Estates.
DLF whole-time director and group chief financial officer Ashok Tyagi on Thursday said the land being referred is an old land acquisition case, entailing a small 5-6 acre parcel, which is by Aaliayah Real Estates, which is not its subsidiary.
DLF informed the stock exchange that the complainant, KK Sinha, had filed a complaint against its IPO prospectus in 2007, which was decided in the company’s favour by the Securities Appellate Tribunal (SAT) in March 2015, where the latter said there were no misstatements or non-disclosures.
The appeals made by market regulator Sebi and the complainant against the order are in public domain and pending before the Supreme Court.
DLF denied the allegations in a fresh application by the complainant before the Supreme Court in May 2019 that certain ongoing land litigation before the court should have been disclosed as a part of the RHP (2013) & Placement Document (2019).
“…Since the SAT order had stated that certain entities are not subsidiaries of DLF group and consequently litigation pertaining to such companies does not require disclosure, in compliance therewith and the current securities regulations, the alleged ongoing land litigation did not require disclosure,” DLF said.
Its June quarter net profit jumped 140.08% (over two-fold) to ₹414 crore as the company strengthened its cash reserves and pared debt. Its net profit stood at ₹172.44 crore in the year-ago period. The real estate firm’s total income declined 7.04% to ₹1,540.95 crore during the same period from ₹1,657.67 crore in the corresponding period of the previous year. DLF launched a QIP in March to raise ₹3,200 crore.
