Shares of Himachal Futuristic Communication Ltd (HFCL) took a beating today to close at Rs 76.40, a drastic 15 per cent lower than Thursday's close of Rs 89.05 following the news that the TV business of HFCL Nine Broadcasting India, its joint venture with Australian media tycoon Kerry Packer is to be shut down.
The negative news coupled with the expected unwinding of outstanding positions before July 2 may pull down the stock price further in the next few days, dealers said.
According to company announcement, all the programmes of the company transmitted through DD Metro in the prime time 19:00-21:00 IST slot would go off the air by September 10, following its decision not to bid afresh for the evening airtime slots for which Prasar Bharati, which runs Doordarshan, had invited bids.
The company's annual contract with the national broadcaster is to expire by mid-October 2001. The company's decision follows Doordarshan reserving the right to terminate any new contract without notice.
The market is rife with rumours that the company is facing liquidity crunch as the funds of around Rs 1000 crore from cash reserves are blocked in the stock market. There are apprehensions that the company might face problems in executing orders worth Rs 700 crore in the next 6-8 months due to the liquidity crunch.
