Unitech surges by 19 per cent on NCLT decision

On the back of the suspension of Unitech's board of directors by the National Company Law Tribunal, the share price of the company surged by over 19 per cent during Monday's intraday trade.
 
NCLT had suspended the board of directors of the company on Friday, entrusting the Ministry of Corporate Affairs to nominate names of 10 new Nominee Directors of the company by December 20. The ministry had offered to take charge of the firm for safeguarding the public interest. However, the company has filed a plea against NCLT with the Supreme Court of India.
 
The company’s flawed operations have led to the clogging of the investments of over 19,000 home buyers for several years. The company also owes a sum worth Rs. 723 crore to about 51,000 small depositors. Unitech has a surmounting loan of Rs. 6,000 crore with no cash flow to service the loans. The company had also posted a loss of Rs. 402 crore for the second quarter of FY18.
 
On Monday, the stock hit an intraday high of Rs. 8.70 per share, higher by over 19 per cent and an intraday low of Rs. 7.81 per share. The stock had hit its 52-week high of 9.87 per share on July 26, 2017 and its 52-week low of Rs. 3.89 per share on December 29, 2016, respectively.
 
At 11:40 hours, the stock was trading at Rs. 8.12 per share, higher by 11.39 per cent on BSE on Monday.