TARC Shares Hit Lower Circuit After SEBI Orders Forensic Audit
The markets regulator will examine the realty company's financial statements for the fiscal years 2020-21 to 2022-23.
Shares of TARC Ltd. plunged 10% on Tuesday, hitting the lower circuit limit, after the company disclosed that the Securities and Exchange Board of India had appointed a forensic auditor to examine its financial statements for the fiscal years 2020-21 to 2022-23.
According to the filing, SEBI's decision follows concerns regarding the manner in which TARC's financial information and business transactions have been disclosed, potentially compromising investor interests and the integrity of the securities markets. The regulator's letter, dated Dec. 16., stated that the audit is essential to address these concerns.
In response, TARC assured investors that it would fully cooperate with the forensic audit, providing all necessary information and assistance. The company emphasised that the audit would have no impact on its financial, operational, or strategic objectives. TARC expressed confidence that the matter would be resolved efficiently, reiterating its commitment to maintaining high standards of corporate governance and transparency.
TARC also stated that it believes the audit will ultimately enhance shareholder trust by prioritising transparency, compliance, and accountability within its operations.
Earlier, on Dec. 13, TARC had announced that its wholly owned subsidiaries—Fabulous Builders Ltd., Grand Buildtech Ltd., and TARC Green Retreat Ltd.—along with Moon Shine Entertainment Ltd. (a step-down subsidiary), were raising a total of Rs 340 crore through the issuance of non-convertible debentures.
TARC is a luxury real estate developer in Delhi that carries out both residential and commercial projects. The market cap of the company stands at Rs 5,593.55 crore.
TARC Share Price Today
TARC stock fell as much as 10% during the day to Rs 187.92 apiece on the NSE. It was trading 10% lower at Rs 187.92 apiece, compared to a 1.20% decline in the benchmark Nifty 50 as of 1:41 a.m.
It has risen 39.41% in the last 12 months and 38.48% on a year-to-date basis. The relative strength index was at 27.23.
The two analysts tracking the construction company have a 'buy' rating according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 340, implying a upside of 80.9%.
