The DLF stock slumped over 7 per cent on Monday after activist-turned-politician Arvind Kejriwal demanded a probe into the deals between the company and Robert Vadra, son-in-law of Congress chief and UPA Chairperson, Sonia Gandhi. Close to two crore shares changed hands on the NSE and another 20 lakh shares on the BSE — much above average trading volumes. On the NSE, after opening at Rs 23, the stock closed at Rs 223.85 against the previous day’s close of Rs 241.90.
Arvind Kejriwal and Prashant Bhushan, members of India Against Corruption, alleged that DLF had sold prime land at throwaway prices and gave interest-free loans to Vadra. DLF, however, denied any undue gains for the company from the business relationship with Vadra.
As the issue once again brought to the fore the corporate governance practices followed by DLF, the stock reacted negatively. Earlier this year, Canadian-based research firm Veritas accused DLF of undertaking “questionable related-party transactions” to boost the value of DAL (DLF Assets) prior to its acquisition by the company.
“The initial four per cent decline at the opening was mainly because of these news reports,” said Sailav Kaji, Director-Institutional Equities & Chief Strategies, Padmakshi Financial Services. But the subsequent decline was due to the overall market condition, he added.
“Further impact of these allegations seems unlikely for the stock now. DLF is more likely to react to sector performance and the overall market performance,” he said.