Indiabulls Housing Finance has been in the news for all the wrong reasons after its chairman and directors were accused of allegedly misappropriating Rs 98,000 crore of public money. However, the firm has termed these allegations a desperate attempt to "malign" the company's reputation and create hurdles in its merger with Laxmi Vilas Bank.
On June 10, 2019 a plea was filed in the Supreme Court seeking legal action against Indiabulls Housing Finance Limited (IHFL), its Chairman and directors for alleged misappropriation of Rs 98,000 crore of public money. The petition alleged that money worth thousands of crores were siphoned off by Sameer Gehlaut, the chairman of the firm, and the directors of Indiabulls for their personal use.
Indiabulls Housing Finance tumbled as much as 20 percent to Rs 488 apiece on the National Stock Exchange on Wednesday morning. The stock managed to close 8.91 percent in the red at Rs 555.40 a peice.
The stock saw spurt in volume by more than 2.08 times and traded on new 52-week low value of Rs 500.20 per share. Indiabulls Housing Finance closed at Rs 555.40, down Rs 54.30, or 8.91 percent. It has touched a 52-week low of Rs 500.20. The scrip was trading with volumes of 3,519,405 shares, compared to its five day average of 1,935,881 shares, an increase of 81.80 percent.
Sudip Bandyopadhyay, Group Chairman at Inditrade is of the view that Indiabulls Housing Finance is available at significantly attractive valuations. If one looks at it as a pure play housing finance company and if one is an aggressive investor then one can hold or even buy the stock at current levels.
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