Investors hammer Britannia Industries stock on loans to group firms

Company disclosed on Thursday it had lent Rs 675 crore to associate firms

The share price of food major Britannia Industries was down nearly 4 per cent on Thursday following concerns over loans to group companies. The stock remained volatile through the day after a disclosure by Britannia that it had inter-corporate deposits (ICDs) in associate companies, which was under 25 per cent of its total investments.

The disclosure was made during an analysts call on Thursday, when the company was asked to explain its investment policy. While Britannia’s FY19 total investments stand at Rs 2,700 crore, according to its latest financial statements, 25 per cent of this works out to around Rs