63 Moons Technologies plunges over 30% in four days

The stock dipped nearly 20% to Rs 95 on the BSE on back of heavy volumes today

63 Moons Technologies (formerly Financial Technologies (India)) slipped nearly 20% to Rs 95 on the BSE, extending its past three days decline, after the Bombay High Court on Monday upheld the order of the Union Ministry of Corporate Affairs (MCA) for a merger of scam-tainted National Spot Exchange Ltd (NSEL) with the company.

In past four trading days, the stock has declined 31% from Rs 138 on Friday, December 1, as compared to a marginal 0.10% fall in the S&P BSE Sensex. With effect from today, the stock exchange revised the circuit filter to 20% from 5% earlier.

The trading volumes on the counter jumped more than 10-fold with a combined 7.14 million shares changed hands on the BSE and NSE till 01:27 PM.

"The Hon'ble Bombay High Court has dismissed our writ petition. However, it has granted 12-week stay on the operation of the merger order. We will be moving the Supreme Court during this 12 week period. We have full faith in the judiciary and continue to believe that ultimately the truth and justice shall prevail" 63 Moons Technologies said in a regulatory filing.

The order clears the legal way for a government to order the merger of two private entities. Also noteworthy since NSEL is a limited liability company. Its liabilities, by the order, when confirmed by the court, will become 63 moons' once a merger takes place. The government exercised its power under Article 396 of the Companies Act, the Business Standard reported.

CLICK HERE TO READ FULL REPORT.

In past two and half months, since August 8, 2017, the stock had outperformed the market and rallied more than 153% from Rs 54.45. On comparison, the S&P BSE Sensex was up 4% during the same period.