New Delhi: Shares of Videocon Industries Ltd fell for the second straight session on Tuesday and nose-dived 20% amid reports of loan repayment worries.
The stock tumbled 20% to close at Rs64.80—its lowest trading permissible limit for the day and also its 52-week low—on the BSE. At NSE, shares of the company plunged 19.95% to end at Rs65.60. The stock had tumbled over 19% in the previous session also, wiping out Rs1,191.71 crore from its market valuation in two days. Earlier in the day, the BSE had sought clarification from the company on reports that Videocon hits 20% lower circuit for the second session on loan repayment worries.
The company, in a clarification to the BSE, said, “In this connection, we would like to submit that Dena Bank has recently announced that it had classified Videocon’s loan amounting to Rs520 crore as non-performing assets. This has resulted into some negative publicity of the company and, accordingly, impacted its stock price. We believe that the recent crash on the stock price of the company could be due to the said classification of Videocon’s loan as NPA by Dena Bank.”
“We are not aware of any other information which could explain the movement in the trading,” it added.