Niskalp & #8217;S Market Operations Cost Tata Finance Rs 200 Crore

The hole created in the balance sheet of Niskalp Investment & Trading Ltd, the former Tata Finance subsidiary, by its stock market operations is getting bigger. Niskalp and therefore, Tata Finance has lost over Rs 200 crore in its stock market exposure. This is four times more than the figure reported in the first information report (FIR) the Tatas had filed with the economic offences wing of the Maharashtra government early this month.

The loss is due to a massive exposure in five stocks whose market value has been eroded substantially over the last few months. The list of stocks in the Niskalp portfolio includes DSQ Software, Global Telesystems, Vakrangee Softare, Pentamedia Graphics and Cyberspace Infosys.

 

In the FIR, the Tatas accused former Tata Finance managing director Dilip S Pendse of embarking upon carryforward transactions in DSQ, Zee Telefilms, Global Telesystems and Pentamedia Graphics, leading to a loss of Rs 46 crore for Niskalp.

DSQ is currently trading at around Rs 34 (its 52-week high being Rs 847.65 and low Rs 23.50), Global Tele Rs 105 (Rs 1,673.90 and Rs 93.40), Vakrangee Rs 19 (Rs 126.50 and Rs 15.65), Pentamedia Rs 54 (Rs 527.90 and Rs 50.65) and Cyberspace Rs 1.15 (Rs 190 and Rs 1.05).

Tata sources said Y Kale, senior partner of AF Ferguson & Co, which was appointed to conduct a probe into the affair, has submitted its preliminary report and the quantum of loss has been ascertained. The next stage involves the restructuring of Niskalp.

Niskalp, which had Rs 500 crore worth of inter-corporate deposits (ICDs), boasts of an equity portfolio of around Rs 300 crore, primarily consisting of these five scrips. The market value of the portfolio has got eroded by at least Rs 200 crore.

Niskalp