Geodesic tanks as lenders invokes pledged shares
The stock of internet software and services provider has tanked 48% from its recent highof Rs 56.50 touched on November 29.
Geodesic is down almost 5% for eighth day in a row, and was locked in lower circuit at Rs 29.45 with no buyers on the counter after the company said that lenders have invoked large number of pledge shares held by them.
A combined 93,716 shares have already changed hands on the counter and there are pending sell orders for 1.14 million shares on the BSE and NSE at 1010 hours.
The stock of internet software and services provider has tanked 48% from its recent high touched on November 29. The stock had surged 46% in just three trading sessions to Rs 56.50 from Rs 38.60 after the company announced share buyback and dividend plans.
As disclosed to stock exchanges, Karvy Financial Services and Aditya Birla Finance have invoked a large number of pledged shares which has been offloaded in the open market to recover dues.
“Lenders have invoked pledged quantity. The lenders shall transfer back all remaining shares upon realization of their dues. We are trying to our best to recover invoked shares by providing additional margin/repayment of dues,” Geodesic said in a filing.
Karvy Financial Services and Aditya Birla Finance have collectively invoked 8.59 million shares representing 8.19% total share capital of the company held by two promoters – Kiran Kulkarni and Pankaj Kumar between December 4 and December 12, the company said.
The promoters had pledged 13.78 million shares or 60.31% their holding as on September 30, 2012, the BSE data shows.
Invocation of a pledge is triggered when a borrower, faced with a dip in share price, is unable to deposit additional margin with the lender.