Yesterday, there was a report that the Enforcement Directorate (ED) on Monday conducted raids at Indiabulls Finance Centre in Mumbai.
The search was conducted on the basis of an Enforcement Case Information Report (ECIR) registered by the ED under the Prevention of Money Laundering Act, 2002, (PMLA). The FIR said that the company had siphoned money and invested in their own shares for an increased price. The complainant had named real estate companies that had taken loans from Indiabulls and routed money back into IndiaBulls housing shares.
And today morning, IndiaBulls Real Estate zoomed up to become the top gainer on the BSE after it issued a clarification saying that the ED investigation did not pertain to the company and has no bearing on the business and operations of the company. This much was enough for the stock too zoom up though the fact remains that there was an ED raid.
The stock, which had closed yesterday at Rs.103, opened slightly higher today at Rs.104.60 and went up 13% to hit an intraday high at Rs.116.90 where it currently trades.