Videocon Industries is locked in lower circuit for the third straight trading day, down 10% at Rs 58.35, its lowest level since August 2004 on BSE. In past three trading sessions, the stock tanked 42% from Rs 100.45 on Friday, May 19, 2017, on back of heavy volumes.
Till 10:46 am; a combined 75,892 shares changed hands and there were pending sell orders for 11.52 million shares on the BSE and NSE. Dena Bank has recently announced that it had classified Videocon’s loan amounting of Rs 520 crore as non-performing assets (NPA). “This has resulted into some negative publicity of the company and, accordingly, impacted the stock price”, Videocon Industries said in a clarification on news report that the stock fallen due to loan repayment worries. We believe that the recent crash on the stock price of the company would be due to the said classification of Videocon’s loan as NPA by Dena Bank, it added. According to Business Standard reports, the stock of Videocon Industries fell as lenders sold shares pledged by its promoters against loans. CLICK HERE TO READ THE FULL REPORT. Meanwhile, the board of directors of the company is scheduled to meet on Friday, 26th May, 2017, to consider and take on record the audited financial results for the financial period and quarter ended on 31st March, 2017. The company had reported standalone net loss of Rs 1,368 crore for the 12 months period ended December 2016 against loss of Rs 56 crore in the same period last year.