Omaxe hits 11-year low despite clarification, tanks 66% in 12 days

The stock was locked in lower circuit for 12th straight trading day

Shares of Omaxe were locked in 5 per cent down circuit at Rs 75.85, an 11-year low, on the BSE on Monday despite the company issuing a clarification regarding the recent volatility in the stock price.

The real estate firm's stock was locked in lower circuit for 12th straight trading day. It has fallen 66 per cent from the level of Rs 220.55 on June 26, 2020. The stock is trading at its lowest level since July 14, 2009. Recently, the company had issued a clarification to the exchanges, saying the movement in the share price is "purely due to market conditions and based on demand and supply principles".

Till 10:42 am, around 89,700 equity shares had changed hands on the NSE and BSE, combined, and there were pending sell orders for 2.6 million shares, data shows.

According to disclosure made by the company on Friday, July 10, lender Venus India Asset-Finance Private Limited has invoked 160,000 equity shares held by Guild Builders Private Limited, one of the promoters of Omaxe. CLICK HERE FOR DETAILS

As on March 31, 2020, out of total 74.15 per cent or 135.63 million equity shares held by promoters, about 52.32 per cent or 70.97 million equity shares were pledged, the shareholding pattern data shows.

On April 3, rating agency Credit Ratings by Credit Analysis and Research Limited (CARE) had downgraded the ratings of the company's long term bank facilities.

The ratings continue to remain constrained on account of elevated debt level along with its dependence on debt refinancing, execution and saleability risk for ongoing projects along with new launches. The rating also takes into cognizance the legal petition filed with National Company Law Tribunal (NCLT) by erstwhile Joint Managing Director - Mr. Sunil Goel against Mr. Rohtas Goel for malpractices and financial mismanagement in the company, it said. CLICK HERE FOR FULL REPORT

Meanwhile, Omaxe, which was scheduled to announce its January-March quarter (Q4FY20) earnings on June 29, has postponed the same by a month. On June 26, the company had informed the stock exchange that the board of directors of the Company are now scheduled to meet on July 29, 2020 to approve the Q4 results.

The board will also consider and recommend dividend on preference shares and equity shares. It will also approve the enabling resolution for shareholder's approval to undertake fund raising activity, it said.

“Few press releases have correlated the reason for fluctuation in our stock price to postponement of the date of Board & Committee Meeting to July 29, 2020, which according to us is unreasonable and unrelated. We had to postpone the meeting and results due to the present situation in the country and the whole world due to COVID 19 pandemic,” Omaxe said, while issuing clarification, on July 3.

“There is no change in management or any of the planned projects. We again reiterate and assure all the stakeholders that despite Covid19 effect on the industry during these months, the company and its management is working hard to normalize the operations and construction has started at most of the projects and sales and revenues have started picking up,” it said. CLICK HERE TO READ PRESS RELEASE