Shares of debt-ridden Videocon Industries have fallen 10% in the last two days. Videocon Industries is reeling under a massive debt pile. The lead bankers to Videocon Industries were State Bank of India, Punjab National Bank, Dena Bank, Central Bank and Andhra Bank. Earlier this week, the State Bank of India has taken Videocon to the National Company Law Tribunal (NCLT) for a loan default of Rs 3,900 crore, ET Now reported. Videocon was among 28 companies that were identified by the Reserve Bank of India in its second list of big defaulters. Videocon owes over Rs 29,000 crore to the consortium of banks.
The stock of Videocon Industries tanked as much as 10% to Rs 24 in the last two days on NSE. A heavy trading volume has also been observed in the shares of Videocon Industries. In 2018, on 5 and 8 January about 1.7 crore and 1.04 crore shares were traded on NSE alone. Videocon and other companies were given December 13 deadline to restructure their debt, failing which the central bank has asked lenders to initiate the insolvency process against them.
On Monday this week, Videocon Industries reported a net loss of Rs 1,033.69 crore for the July-September quarter of financial year 2017-2018. Videocon posted a loss of Rs 40.366 crore in the same quarter a year ago. The total income of Videocon Industries declined 68.3% to Rs 855.77 crore during the same quarter under review as against Rs 2,700.08 crore in the corresponding period previous fiscal.
The total debt of Videocon Industries stood at Rs 47,554 crore at the end of December 2015, data from the company’s annual report for the year showed. The company has not filed its annual report for 2016 with the stock exchanges till date.
Meanwhile today, Indian stock markets closed at record highs on Thursday after trading in red until morning session with the blue-chip shares of Infosys, Bharti Airtel, Indiabulls Housing Finance, HDFC, Kotak Mahindra Bank, Eicher Motors, Tech Mahindra, HUL, Yes Bank rising the most. Sensex rose about 70 points to settle at a fresh lifetime peak of 34,503 while Nifty rose 19 points to end at a record high of 10,651.2. The domestic stock markets started on a cautious note today as investors were keenly awaiting the major third-quarter earnings beginning with the blue-chip firm TCS.