Geodesic drops after London Court judgment

Geodesic was locked at 5% lower circuit at Rs 3.01 at 12:21 IST on BSE after the London Court directed the software firm to pay Citibank in a case filed by bondholders against the company.

Meanwhile, the BSE Sensex was down 93.46 points, or 0.45%, to 20,629.51

On BSE, so far 1.07 lakh shares were traded in the counter with pending sell orders of 1.58 lakh shares at lower circuit. The stock has an average daily volume of 1.34 lakh shares in the past one quarter.

The stock opened with downward gap, falling by the maximum 5% daily circuit and remained locked at the 5% level at Rs 3.01 so far in the day. The stock had hit a 52-week high of Rs 14.75 on 21 February 2013. The stock had hit a 52-week low of Rs 2.56 on 6 September 2013.

The stock had underperformed the market over the past one month till 19 February 2014, falling 32.33% compared with the Sensex's 1.62% fall. The scrip had also underperformed the market in past one quarter, falling 41.48% as against Sensex's 0.80% decline

The small-cap company has an equity capital of Rs 18.07 crore. Face value per share is Rs 2.

Geodesic after market hours on Wednesday, 19 February 2014 said that the London Court has given a Summary Judgment in the case filed by the Bondholders through their Trustees, Citibank N.A., London (Citibank). According to the Judgment, the company has to pay to Citibank a sum of $157,064,251, $14,881,837.78 in respect of unpaid default interest upto and including 7 February 2014 and $39,266.06 per day of default interest from 8 February 2014 to the date of payment. It is also ordered that the company would also have to pay the cost of the proceedings i.e. 1,22,500 pounds excluding of VAT, Geodesic said.

Geodesic reported net loss of Rs 37.58 crore in Q2 December 2013 as compared to net profit of Rs 14.34 crore in Q1 September 2013. Net sales fell 66.57% to Rs 8.13 crore in Q2 December 2013 over Q1 September 2013.

Geodesic provides IT solutions to the enterprise and the retail segments. The company offers its solutions across smart phones, tablets and desktop computers.

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