People would have heard about the bankruptcy rumors of HDIL doing rounds - 2 days back which was a 6000 crore company has suddenly become a 3100 crore company. And the reason, company or promoters didn't have a cash of 50 crore to make some payments for government charges related to land they had bought. This is the version put out by the company. But it also reflects the status of liquidity crunch in the market.
These developments has shocked many guys. No one knows the truth yet, As of now it looks like an overreaction. Are you aware that if the company goes bankrupt, Probability of recovering all the money you have given for buying your flat is very low.
This also reminds upon everyone to be careful in investing in any under construction property. People might have earned money in last 5 years in pre-launch buy and sells, but the past is not indicator of the future. There is already a thread in Noida forum which advocates buying RTM and avoid unnecessary risks, It makes more sense to me now. Don't bet on the party to go unabated on factors like RBI is going to decrease rates etc. etc. RBI may decrease rates, but in recent times RBI has been aggressive in reprimanding banks about RE loans.
Its time to be careful in handing out your money to the builder for under-constructed property. Evaluate with the worst possible scenario that you might lose the money forever.
Or better still, wait for the RE Regulator bill which is going to come in 2-3 months. Which has provisions to make sure that money given by you is used in your project only. That bill is already giving jitters to most of the builders and they are in hurry to get their all pre-launch etc crap done as
it would not be possible then.
I hope the HDIL doesn't go bankrupt. I know someone has already paid 35 lacs for a 1 crore property which in case of bankruptcy could be valued anything (even zilch).
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  • Logix is the first builder that comes to mind.
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  • Yeah, this is a very scary picture... I have invested in one of properties of HDIL for end use and waiting for possession having paid 95% of flat value...

    I don't even know what to do?
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  • Originally Posted by akgraj
    Yeah, this is a very scary picture... I have invested in one of properties of HDIL for end use and waiting for possession having paid 95% of flat value...

    I don't even know what to do?


    Friend, I sincerely hope everything gets solved in time for you.
    I heard of the same situation from someone else which compelled me to think is it really worth the risk? People used to say RE is safer than equities in India. But, it shows that even RE can give you the same heartburn sometimes.
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  • Company is not going bankrupt: HDIL

    Mumbai-based realty developer Housing Development Infrastructure (HDIL) on Thursday said that the company is not going bankrupt. The statement came soon after the company stock dropped over 30% in three trading sessions and hit its lowest since September 17, 2012.

    The promoters of the company sought to assure that that no more sale of shares would take place. Talking to media over phone, Hariprakash Pandey, V-P Finance said, "Company is not going bankrupt and promoters will not sell any more shares."

    "There have been lots of rumours in the market about bankruptcy and defaults, which we totally deny," Pandey said.

    Stating that the rumours of bankruptcy and defaults are false, the company added that it is looking to repay debt from internal accruals. The share sale decision was taken by promoters and the proceeds will be used to meet payment commitments, Pandey said.

    "98% of the promoter stake is pledged and promoters cannot buy back shares in the next six months," Pandey added. No decision has been taken to issue warrants as of now.

    "We are very comfortable with the debt repayment schedule and we are as per schedule," he added.

    Meanwhile, the Securities & Exchange Board of India (Sebi) is keeping a 'close' eye on the scrip of the company after it tanked 30% in just three trading sessions. Sebi will also seek trade data on HDILBSE -16.99 % from various exchanges.

    At 12:45 PM, shares in HDILBSE -22.44 % were trading at Rs 81.50, down 15.32% on the Bombay Stock Exchange. The real estate developer has seen Rs 1,565 crore ($291.52 million) of market capitalisation wiped out since Tuesday.

    Partial stake sale by Vice Chairman and Managing Director Sarang Wadhawan had raised worries that other stakeholders would also sell shares. On Wednesday, Citigroup sold 49.30 lakh or about 1.16% stake in the company though a bulk deal on NSE at Rs 100.60 a piece.

    "The promoters' decision to sell stake was to support an urgent payment required for a land acquisition. The decision has not been supported by investors. There won't be any further stake sale by promoters," Pandey said.

    "Not a single pledged share has been sold by any lender or institution and there is no risk of these shares being sold. The liquidity is healthy," Pandey said adding that the promoters will increase their stake to the earlier level at the end of next six months.

    Wadhawan, however, declined to offer details of the land parcel for which the part payment will be taken care of through his stake sale proceeds. According to Wadhawan, the amount for now will flow into the company as a loan, for which the company will issue a convertible instrument to him later during the year.

    HDIL's total consolidated debt stands at Rs 4,000 crore with average cost of debt of 13.25% as on December 31, he said. The company continues to focus on execution of its projects and is on track to reduce its debt.


    Company is not going bankrupt: HDIL - The Economic Times
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  • Originally Posted by abhay1991
    Mumbai-based realty developer Housing Development Infrastructure (HDIL) on Thursday said that the company is not going bankrupt. The statement came soon after the company stock dropped over 30% in three trading sessions and hit its lowest since September 17, 2012.

    The promoters of the company sought to assure that that no more sale of shares would take place. Talking to media over phone, Hariprakash Pandey, V-P Finance said, "Company is not going bankrupt and promoters will not sell any more shares."

    "There have been lots of rumours in the market about bankruptcy and defaults, which we totally deny," Pandey said.

    Stating that the rumours of bankruptcy and defaults are false, the company added that it is looking to repay debt from internal accruals. The share sale decision was taken by promoters and the proceeds will be used to meet payment commitments, Pandey said.

    "98% of the promoter stake is pledged and promoters cannot buy back shares in the next six months," Pandey added. No decision has been taken to issue warrants as of now.

    "We are very comfortable with the debt repayment schedule and we are as per schedule," he added.

    Meanwhile, the Securities & Exchange Board of India (Sebi) is keeping a 'close' eye on the scrip of the company after it tanked 30% in just three trading sessions. Sebi will also seek trade data on HDILBSE -16.99 % from various exchanges.

    At 12:45 PM, shares in HDILBSE -22.44 % were trading at Rs 81.50, down 15.32% on the Bombay Stock Exchange. The real estate developer has seen Rs 1,565 crore ($291.52 million) of market capitalisation wiped out since Tuesday.

    Partial stake sale by Vice Chairman and Managing Director Sarang Wadhawan had raised worries that other stakeholders would also sell shares. On Wednesday, Citigroup sold 49.30 lakh or about 1.16% stake in the company though a bulk deal on NSE at Rs 100.60 a piece.

    "The promoters' decision to sell stake was to support an urgent payment required for a land acquisition. The decision has not been supported by investors. There won't be any further stake sale by promoters," Pandey said.

    "Not a single pledged share has been sold by any lender or institution and there is no risk of these shares being sold. The liquidity is healthy," Pandey said adding that the promoters will increase their stake to the earlier level at the end of next six months.

    Wadhawan, however, declined to offer details of the land parcel for which the part payment will be taken care of through his stake sale proceeds. According to Wadhawan, the amount for now will flow into the company as a loan, for which the company will issue a convertible instrument to him later during the year.

    HDIL's total consolidated debt stands at Rs 4,000 crore with average cost of debt of 13.25% as on December 31, he said. The company continues to focus on execution of its projects and is on track to reduce its debt.


    Company is not going bankrupt: HDIL - The Economic Times


    Yes Abhay, that was the story at 12:45 PM when the management came for a conference call. But, they gave such a lame excuse for the 50 crore thing that HDIL tanked another 15% after he gave his clarifications on TV.
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  • noone is expecting them to say that we are going bankrupt, I am surprised that a listed company is in such bad shape, wat would happen to the small time builders
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  • well the tradition always was that ppl made a name for themselves, earned thru hard work or long term equities and then to settle down, they buy land.

    but in recent times, every tom dick and harry is out there to make money. brokers who have no idea sit in swanky offices and advise as if we were born y'day.

    so yes always feel happy when such ppl r stuck but really worry abt the innocent ppl whose dreams of a single house in whole lifetime is shattered.

    how come the company is bankrupt and the promoters go scotfree. there must be some measures to confiscate there wealth.
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  • Originally Posted by softie
    noone is expecting them to say that we are going bankrupt, I am surprised that a listed company is in such bad shape, wat would happen to the small time builders


    So many Listed companies loot people and go home. The shock comes when you see the bigger names getting busted like this.
    Satyam, Deccan Chronicle are the example of big ones..
    smaller ones you have unlimited names like tulip, Glodyne etc. and of course that classic comapny named silverline technologies.
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  • Originally Posted by softie
    Logix is the first builder that comes to mind.


    Yes logix is at top but 3C is also not in good shape as both are selling their land to other builders to generate cash flow.
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  • How about Jaypee...


    Originally Posted by pkm121
    Yes logix is at top but 3C is also not in good shape as both are selling their land to other builders to generate cash flow.
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  • unitech dlf ? both total frauds
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  • Originally Posted by delhihush
    unitech dlf ? both total frauds


    :) Seems like supertech and amarpali are only safe ones :) :)
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  • Originally Posted by asingla
    :) Seems like supertech and amarpali are only safe ones :) :)


    omg...really?
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  • Lets take one step further ..

    We may DIE the next hour, still we are discussing so many things, planning so many things ..

    Have you ever thought what happened if your so called SAFE RTM collapse? fire? What happen if your FD bank collapsed like Lehman? What happened if Indian Gov defaults like Iceland?

    Risk is in every sphere of life and you have all the option to go to Himalay!!

    How many are going to Himalay?
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  • dear friend,some write in this thread logix is next HDIL.Is it correct to say this abt logix builder?



    Originally Posted by gharondabhai
    Lets take one step further ..

    We may DIE the next hour, still we are discussing so many things, planning so many things ..

    Have you ever thought what happened if your so called SAFE RTM collapse? fire? What happen if your FD bank collapsed like Lehman? What happened if Indian Gov defaults like Iceland?

    Risk is in every sphere of life and you have all the option to go to Himalay!!

    How many are going to Himalay?
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