Deccan Chroncile hits new low on liquidation fears

IFCI has expressed complete scepticism over the financial health, sought the winding up of the company to recover its dues

Deccan Chronicle Holdings has plunged 9% to Rs 15.25, its new low on reports that the state-owned financial institution, IFCI has sought the appointment of a liquidator for the company’s assets.

“In a petition filed in the Andhra Pradesh High Court, IFCI has expressed complete scepticism over the financial health of Deccan Chronicle and sought the winding up of the company to recover its dues,” the report suggests.

Meanwhile, in a disclosure to the bourses, the company said that its promoters have pledge an additional 14.5% stake of the company to Religare Finvest. Last week, the promoters had pledged 54% of their stake in the company to Future Capital.

 

The stock of Deccan Chronicle Holdings, which publishes the Deccan Chronicle chain of newspapers, has tanked around 45% in past eight trading sessions, after its board accepted the resignation of Sri N. Krishnan as managing director and also as director of the company.

The counter have seen huge activity, with a combined 8.79 million shares, representing 16% of free-float equity of the company have already changed hands so far, against an average around 2 million shares that were traded daily in past two weeks.