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IL&FS Engineering drops as Sebi directs the company to disgorge Rs 59.16 crore in Satyam scam case

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Capital Market
Last Updated : Sep 12 2015 | 12:01 AM IST

IL&FS Engineering and Construction Company lost 0.81% to Rs 66.95 at 11:24 IST on BSE after market regulator Sebi yesterday, 10 September 2015, directed the company to disgorge Rs 59.16 crore among others in Satyam scam case.

Meanwhile, the S&P BSE Sensex was up 86.23 points or 0.34% at 25,708.40.

On BSE, so far 10,000 shares were traded in the counter as against average daily volume of 40,075 shares in the past one quarter.

The stock was volatile. The stock lost as much as 2% at the day's low of Rs 66.15 so far during the day. The stock rose as much as 1.85% at the day's high of Rs 68.75 so far during the day. The stock had hit a 52-week low of Rs 52.75 on 26 September 2014. The stock had hit a 52-week high of Rs 116.30 on 24 February 2015.

The stock had underperformed the market over the past one month till 10 September 2015, sliding 17.68% compared with Sensex's 8.82% fall. The scrip had, however, outperformed the market in past one quarter, declining 3.09% as against Sensex's 4.54% fall.

The small-cap company has equity capital of Rs 112.26 crore. Face value per share is Rs 10.

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Market regulator securities and Exchange Board of India (Sebi) yesterday, 10 September 2015 passed on order in Satyam scam case directing 10 entities including IL&FS Engineering and Construction Company (formerly Maytas India Limited) linked to the main accused and then Satyam Computers' founder Chairman B Ramalinga Raju to disgorge over Rs 1800 crore worth of illegal gains made by them. IL&FS Engineering and Construction Company was asked to disgorge Rs 59.16 crore among others. Sebi, however, said that IL&FS Engineering and Construction Company was neither an insider in Satyam Computers and Maytas, nor did it have access to the 'unpublished price sensitive information', and therefore it has been spared of any debarment action.

Further, Sebi also directed the said entities to pay an interest at 12% per annum on the disgorgement amount with effect from 7 January 2009, the day Satyam Computers' founder and then Chairman B Ramalinga Raju admitted to a massive long-running fraud at the company.

IL&FS Engineering and Construction Company reported a net loss of Rs 60.95 crore in Q1 June 2015, higher than net loss of Rs 36.81 crore in Q1 June 2014. Net sales declined 10.8% to Rs 480.05 crore in Q1 June 2015 over Q1 June 2014.

IL&FS Engineering and Construction Company is into infrastructure development, construction and project management.

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First Published: Sep 11 2015 | 11:28 AM IST

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