Infibeam's shares plunge 71% after WhatsApp message about unsecured loans goes viral

A WhatsApp message generated a few months back suddenly became viral on Friday afternoon wiping off 71% market value of Infibeam Avenues Ltd, according to reports. Incidentally, tomorrow the company is set to have its AGM. 

The message attributed to Equirus Securities Pvt., according to Bloomberg raised questions about company's accounting practice. It said that the company had given unsecured loans and unit free loans to the tune of Rs 135 crore. As Infibeam shares went into a tailspin, the company came out with an explanation. “The company has always provided timely information sought by the stock exchanges. There is no pending information or announcement from the company which may have a bearing on the price behaviour of the scrip,” Infibeam informed in a regulatory filing. 

Infibeam operates in the e-commerce space in the b2b and b2c markets. 

The e-commerce firm, which has raised Rs 450 crore through the initial public offer (IPO) is the first e-commerce player in the country to make a stock market debut. Started in 2007, Infibeam runs several e-commerce services like Infibeam.com, BuildaBazaar, Incept and Picsquare

Even after the clarification, Infibeam failed to garner investor confidence as selling continued. It was 73% down at one point of time and ended 71% down at the end of trading on Friday.  The share opened at Rs 190, slumped to Rs 53 and ended the day at Rs 58.45.