Housing Development and Infrastructure Ltd (HDIL), the third-largest realtor by market capitalisation, plans to divest its entire 51% stake in subsidiary HDIL Oil & Gas Pvt Ltd.
MUMBAI: Housing Development and Infrastructure Ltd (HDIL), the third-largest realtor by market capitalisation, plans to divest its entire 51% stake in subsidiary HDIL Oil & Gas Pvt Ltd.
Hari Prakash Pandey, deputy general manager - finance, said this during an analyst call on Monday.
“Nothing is happening in this business and no investments would be made. HDIL is not looking at this business,” he said.
On May 26, DNA Money had reported that HDIL is diversifying into oil and gas.
The subsidiary was formed in March with HDIL holding 51% stake and an unnamed foreign promoter holding the rest. The subsidiary had bid for two blocks in the seventh round of the New Exploration and Licensing Policy (NELP-VII) but didn’t bag any.
Sarang Wadhawan, managing director, HDIL, had then said, “We did not qualify, but this company is formed as part of de-risking and diversifying our business.”
The company has also requested banks to reschedule refinancing of the debt it has taken. It is paying an average interest cost of 15.5% to the banks.
HDIL’s second quarter earnings mainly came from sale of transfer of development rights (TDR) and floor space index (FSI). It sold around 1.5 million sq ft of TDR at Rs 2000-2100 per sq ft and 1,48,000 sq ft of FSI at Rs 7,500 per sq ft to developers.
The company said construction on the company’s ambitious Mumbai International Airport Ltd project would start soon.
Pandey said, “This quarter we will get the construction TDR on the airport site and we would start the construction. The rehabilitation would happen side by side in the Kurla plot. We have also acquired land for the second phase. Only acquisition of land for third phase is left. The phase two would begin in 2009.”
The company is spending Rs 2, 400 crore for the first phase, which would be developed in 18 months on a 5.5 million sq ft area and the investment includes land acquisition and Rs 500 crore towards construction.
Three of HDIL’s residential projects are currently up for sale.
During the MCHI property exhibition, it had put offers for its Bhandup residential project, called Dreams, and an under-construction project at Pant Nagar in Ghatkopar.
The Bhandup project had an offer of free registration and stamp duty whereas the Ghatkopar project had no floor rise charge till the eighth floor and was priced at Rs 7,500 per sq ft.
Analysts say the projects didn’t generate much sales.
Pandey, however, said the Bhandup property has been fully sold out and the Ghatkopar project saw good response.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}