Peninsula Land zooms up

The news yesterday was that Peninsula Land has defaulted on its payment to SBI and the stock had hit the 10% LC at Rs.3.60. The stock exchange had sought clarification.

The company said that it made a disclosure on the 1st of Jan, informing about the delay in payment of Rs. 2.35 crore (comprising of Principal Rs.88 lakh and Interest Rs.1.47 cr) to State Bank of India. This triggered certain reports in the press by various news publications on 2"d January 2020 which, the company said were misleading and prone to mis-interpretation.

The company clarified categorically that there was no default in payment of any financial obligation.

The Company has obtained a lease rental discounting facility (LRD) from SBI against the rent receivable from the lessee, the Government of India (Income Tax department & GST department) in respect of a commercial property leased out.

The debt and interest against this facility are serviced by an arrangement whereby the monthly rent received from the lessee (Govt. of India) goes towards the discharge of the dues under the said facility.

Lately, there have been delays in the payment of rent by the Government of India which, in turn, resulted in delay in payment to SBI on the due date. The Company has nevertheless paid the above mentioned dues from its own resources and regularised the said account.

The company said, “It would also be pertinent to mention that in the month of December 2019 alone, the company has paid an amount of Rs. 265 crores towards repayment of debt and interest obligations. Hence there is no question of defaulting for an amount as small as Rs. 2.3 5 crs.”

Following this clarification, the stock price zoomed up today over 5% to Rs.4.05. Its UC of 10% for today is at Rs.4.23.