Videocon shares continue to fall, slump 20 per cent
Dena Bank has recently announced that it had classified Videocon's loan amounting to Rs 520 crore as non performing assets.
New Delhi: Shares of Videocon Industries fell for the second straight session today and nose-dived 20 per cent amid reports of loan repayment worries. The stock tumbled 20 per cent to close at Rs 64.80 -- its lowest trading permissible limit for the day and also its 52- week low -- on BSE.
At NSE, shares of the company plunged 19.95 per cent to end at Rs 65.60. The stock had tumbled over 19 per cent in the previous session also, wiping out Rs 1,191.71 crore from its market valuation in two days.
Earlier in the day, BSE had sought clarification from the company on reports that Videocon hits 20 per cent lower circuit for the second session on loan repayment worries.
The company later in a clarification to 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 Rs 520 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.