Shares of Unitech surged as much as 20 per cent in morning trade today after the NCLT authorised the government to appoint its 10 nominees on the board of the realty firm.
On December 8, the National Company Law Tribunal (NCLT) suspended all the eight directors of Unitech over allegations of mismanagement and siphoning of funds, while authorising the government to appoint its 10 nominees on the board.
Today’s rally is the fourth consecutive one for the stock. On December 8, the Unitech scrip had jumped 20 per cent.
Shares of the company today opened on a bullish note at Rs 8.40, then rose to a high of Rs 8.70, registering a jump of 19.34 per cent over its previous closing price on the BSE.
Similar movement was seen on the NSE as well, where the stock opened at Rs 8.40 and touched a high of Rs 8.70, up 19.47 per cent over its last close.
In a rare move, the government approached the NCLT to take over the management with a view to protecting the interest of nearly 20,000 home buyers.
The tribunal’s order came after the government filed a petition arguing that Unitech was a fit case for winding up but considering the interest of thousands of home buyers and small depositors, it wanted to take over company management.
The company has over Rs 6,000 crore debt with more than 16,000 undelivered units from a total of nearly 70 projects.