Videocon-NCLT-IBC: Shares of the Mumbai-based debt-laden firm Videocon Industries crashed to an all-time low on Thursday after the NCLT (National Company Law Tribunal) admitted Venugopal Dhoot-led consumer electronics company under Insolvency and Bankruptcy Code (IBC).
Videocon-NCLT-IBC: Shares of the Mumbai-based debt-laden firm Videocon Industries crashed to an all-time low on Thursday after the NCLT (National Company Law Tribunal) admitted Venugopal Dhoot-led consumer electronics company under Insolvency and Bankruptcy Code (IBC). The NCLT ruling came nearly after one-and-half-months when Videocon Industries in late-April requested the principal bench of NCLT to direct all insolvency case to be heard together.
“We hope that the banks will recover nearly 70-80% of total loan of Rs 20,000 crore. We would like to have a situation where the entire process is seamless and within the stipulated time frame of 180 days,” Venugopal Dhoot, MD & CEO, Videocon Industries was seen as saying in a PTI report.
Videocon Industries share price fell 5% within seconds of the opening bell to an all-time low on Thursday. Shares of Videocon Industries have been locked in the lower circuit since today morning. The stock of Videocon Industries tumbled 4.97% to an all-time low of Rs 8.6 on NSE while the stock tanked 4.96% to a record low of Rs 8.62 on BSE on Thursday. Shares of Videocon Industries are only available in trade for trade basis after the respective exchanges moved the scrip under trade restrictions with BSE recategorising the stock in ‘T’ group from ‘A’ group.
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Shares of Videocon have been mostly falling since June 2017 when the stock saw a massive decline of about 82% to Rs 17.4 from a share price level of Rs 100.6 within a span of 25 days. Notably, the stock of Videocon had made an all-time high of Rs 871.2 on 1 January 2008 with a trading volume of 15.84 lakh equity shares and a turnover of Rs 134.15 crore while the scrip has made an all-time low of Rs 8.6 with a trading volume of 2.2 lakh equity shares and a turnover of Rs 18.99 lakh on NSE.
The National Company Law Tribunal has announced that Anuj Jain of KPMG will be the interim resolution professional for the case. Anuj Jain will be having 180 days to turn around Videocon Industries with an option of 90 days of extension, a PTI report said. If this process doesn’t progress as per the resolution plan then Videocon Industries will have to go for the liquidation, the report added.
Venugopal Dhoot has said that the company will extend full cooperation in the IBC proceedings and “would like IRP (insolvency resolution professional) to take care of the interest of all our creditors and other stakeholders in the best possible way.”