Indiabulls Merger at Stake, Stocks Hit Five-Year Low
October 04, 2019
Indiabulls Housing Finance Ltd’s shares hit a five-year low as of last close this Monday. At ₹225.65 per share, stocks have fallen from a trading peak of ₹1440 in January last year. Monday recorded its worst-ever daily loss with a 34 percent drop; tallying this year’s loss at a shocking 70 percent.
This is coming at a tense time where the mortgage lender is looking to raise fresh funds amid speculation over its high number of bad loans. The allegations of illegalities have now led to a probe ordered by an Indian court.
Indiabulls’ merger with the Lakshmi Vilas Bank Ltd appears to be at stake with the Indian police probing Lakshmi Vilas Bank’s directors for alleged misappropriation of funds. Indiabulls MD, Gagan Banga, continues to deny allegations and says that this “does not shut the door on the merger.”