After a WhatsApp message circulating among traders raised concerns on the accounting practices Infibeam Avenues Ltd, shares of Apple products retailer tanked 71 percent of its market value on Friday. The company lost 71 percent of its market value intra-day just ahead of its shareholder meetings scheduled Saturday.
The worries were raised in the market when a message attributed to brokerage Equirus Securities began circulating on WhatsApp, Bloomberg reported citing Bhavin Mehta, an analyst at Dolat Capital Market Ltd.
The WhatsApp message mainly alleged that the firm had issued interest-free and unsecured loans to its units, Blomberg reported. Infibeam offered unsecured, interest-free loans of Rs 1.35 billion to related firms for business operations as of March 31, according to the annual report of company.
According to details available on NSE, 15.17 crore Infibeam Avenues shares changed hands during the day. Infibeam Avenues’ shares opened nearly 4 percent down at Rs 190 against the previous close of Rs 197.55, but soon plunged to a 52-week low of Rs 53.5 on NSE on Friday. The stock fell as much as 73 percent before closing 71 percent lower at 58.45 rupees.
The company, in an exchange filing said, “the Company believes that any increase/decrease in volume of price or shares of the Company is purely market driven and that the Company has no control over the same. The Company does not comment on the market speculation.”
The 8th annual general meeting of the e-commerce conglomerate is scheduled today. Infibeam Avenues is primarily engaged in providing software development services, maintenance, web development, e-commerce and other ancillary services.