MUMBAI Housing Development & Infrastructure Ltd's (HDIL.NS) debt metrics "look reasonable", J.P. Morgan Securities said on Friday, countering the market speculation of difficulties in debt repayments that had hit HDIL shares this week.
The brokerage's comments come after shares of the property developer plummeted over the previous three sessions due to market speculation over its debt repayments following a partial stake sale by a top executive.
On Friday, HDIL shares recovered 11.4 percent and closed at 82.90 rupees.
The 38.5 percent slump in HDIL shares earlier in the week was sparked after the company's Vice Chairman Sarang Wadhawan said he had sold part of his stake in the company.
JP Morgan said in a research report that details behind Wadhawan's stake sale would be critical.
"In our view, visibility on how critical it is to do the land purchase during what seems to be a lean liquidity period for the company will be key in determining the outcome. Most of these details will probably be out only in the 3Q results," JP Morgan wrote.
The steep falls prompted HDIL vice president of finance Hari Prakash Pandey to arrange an investor call on Thursday in which he denied the rumors of "bankruptcy and defaults," saying the company was on track with its debt repayments.
The assurances had failed to sway investors, with HDIL shares continuing to slump.
HDIL's Pandey said on Thursday Wadhawan had sold part of his stake because the company had to meet immediate debt and principal repayments, as well as a final tranche of the payment for a land transaction in Mumbai.
(Reporting by Rafael Nam and Abhishek Vishnoi; Editing by Gopakumar Warrier)
CCI fines cement companies $944 million for price fixing
MUMBAI The Competition Commission of India (CCI) has imposed a 63.2 billion rupee ($944 million) fine on 10 cement companies and a trade body for price fixing, the Ministry of Corporate Affairs said a statement.
India accords residency status to foreign investors
NEW DELHI India approved a plan on Wednesday to allow foreign investors to settle, emulating a policy in countries such as the United States and Singapore to woo investment from abroad.
India's fiscal deficit reaches 74 percent of full-year target in July
NEW DELHI India's fiscal deficit during April-July was 3.93 trillion rupees ($58.69 billion), or 73.7 percent of the budgeted target for the fiscal year ending in March 2017, government data showed on Wednesday.