Videocon Industries tanks 53% in one week

The stock is locked in lower circuit for the fifth straight trading day, down 10% at Rs 47.30 on BSE

Videocon Industries is locked in lower circuit for the fifth straight trading day, down 10% at Rs 47.30 on BSE. Thus far in the current week, (in the past five trading sessions), the stock has tanked 53% from Rs 100.45 on Friday, May 19, 2017, on the back of heavy volumes. The stock of consumer durables is trading at its lowest level since August 2004 on BSE.

Till 09:23 am; a combined 38,247 shares changed hands and there were pending sell orders for 12.19 million shares on the BSE and NSE.

Dena Bank has recently announced that it had classified Videocon’s loan amounting of Rs 520 crore as non-performing assets (NPA).

Videocon Industries on Tuesday, May 23, said this has resulted into some negative publicity of the company and, accordingly, impacted the stock price.

We believe that the recent crash on the stock price of the company would be due to the said classification of Videocon’s loan as NPA by Dena Bank, it added.

The sharp fall in market price of the stock have seen investors wealth in Videocon Industries declined by Rs 1,777 crore during the week. At the current market price, Videocon’s market capitalisation stands at Rs 1,582 crore against Rs 3,360 crore, one week before.

According to statistics collated from the BSE, the promoters own 66% in the company and almost the entire promoters’ holding (99.26%) was pledged.

“Market experts say the stock will continue to remain under pressure as the steep correction would trigger liquidation of pledged shares if the promoters fail to cough up margin money,” the Business Standard report suggests. CLICK HERE TO READ FULL REPORT

Meanwhile, the board of directors of the company is scheduled to meet today (Friday), 26th May, 2017, to consider and take on record the audited financial results for the financial period and quarter ended on 31st March, 2017.