IRB Infra slides as federal investigation agency files charges

Last Updated: Thu, Dec 07, 2017 11:55 hrs
IRB Infra

IRB Infrastructure Developers Ltd falls as much as 6.1 pct to 197.00 rupees - lowest since Aug. 11

Co says India's Central Bureau of Investigation has filed charges against the company over alleged illegal purchases of government land by an IRB unit.

IRB denies all allegations in the matter, says has "fully complied with the law of the land".

Adds chargesheet would not have any material impact on its business.

HSBC downgrades stock to "hold" from "buy", cuts price target to 200 rupees from 331 rupees.

HSBC says historically IRB shares have reacted "very negatively" to news related to the alleged illegal land purchases.

"Until further clarity emerges on this front, we believe IRB's shares will be under pressure and will not be driven by business fundamentals," HSBC says.

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