Unitech Ltd, HDIL Replaced By These Two Firms In BSE Realty Index
New Delhi: The Bombay Stock Exchange (BSE) has removed embattled realty firms Unitech Ltd and HDIL from its realty index and has included Mahindra Lifespace Developers and Omaxe Ltd.
Thus the ten firms that constitute the BSE Realty Index now are Oberoi Realty, Omaxe, Sunteck Realty, Godrej Properties, Mahindra Lifespace Developers, Phoenix Ltd, DLF Ltd, Sobha Ltd, Indiabulls Real Estate and Prestige Estates Projects.
“Like all stock exchanges across the globe, BSE’s Realty Index must necessarily sanitize its listings so as to reflect the ground realities and present an accurate picture of companies’ performance. There has also been an almost continuous weeding-out of certain players by the government. Companies must meet certain criteria for being listing – if they are perceived to be falling short of these qualifiers, an omission on the Realty Index is inevitable. This is a good sign and assures investors of greater transparency in their real estate plays,” said Anuj Puri, Chairman, ANAROCK Property Consultants.
Both HDIL and Unitech are mired in a lot of controversaries and defending allegations of financial irregularities. The owners of both the companies are in jail and multiple government agencies including the Enforcement Directorate are probing the conduct of the two companies.
The shares of Unitech are currently trading at Rs 3.04 a piece on the BSE. Similarly, shares of HDIL are trading at Rs 2.30 a piece on the BSE.
The board of Unitech Ltd has been reconstituted by the government and the company is now looking at fair resolution to the problems of buyers, vendors and local authorities to which the company owes money.