Videocon Industries locked in lower circuit for 22 straight trading days

Since May 19, 2017, the stock tanked 81% against 3% rise in the S&P BSE Sensex

Videocon Industries was locked in lower circuit, for the 22 straight day, down 5% at Rs 19.05 on BSE with no buyers were seen on the counter. Till 2:08 pm; a combined 254,165 shares changed hands and there were pending sell orders for 13.94 million shares on the BSE and NSE.

Since May 19, 2017, in past 23 trading sessions, the stock tanked 81% from Rs 100.45, against 3% rise in the S&P BSE Sensex.

According to disclosure made by the Videocon Industries, the promoters’ shareholding in the company has come down by nearly one percentage points with lenders invoking 3.02 million pledged shares.

“A combined shareholding of Shree Dhoot Trading and Agencies, CE India, Platinum Appliances Private Ltd, Dome-Bell Electronics India Private Ltd, Videocon Realty and Infrastructures Ltd & Nippon Investment and Finance Co Private Ltd has declined to 41.93%,” Videocon Industries said in a regulatory filing.

These promoter group companies held 42.89% stake out of total 66.04% holding in the company at the end of March 2017 quarter, shareholding pattern data shows.

The lender & pledge – Vikalp Mundra, SICOM, Followel Engineering, JM Financial Products and Religare Finvest - have invoked the shares of Videocon Industries between June 1, 2017 and June 19, 2017, it added. CLICK HERE TO READ FULL DETAILS

Pledged shares are collateral for a loan; invoking the shares means the lender transfers the shares to itself when the borrower fails to pay back the loan.

Invoking means that the lender has exercised his right on security and the shares have been actually transferred from the demat a/c of borrowers to the demat account of lenders. To that extent the promoters holding has reduced and lender has the liberty to sell the shares at any time and sue the borrower for balance amount.