Shares of Infibeam Avenues plunged a massive 73% today after it surfaced that the company had given interest-free and unsecured loans to one of its subsidiary units. According to a report by Livemint, traders began offloading the company’s stock after receiving WhatsApp messages which cited these loans. However, according to Livemint, these messages were sent by the brokerage firm, Equirus Securities Pvt, a few months back. MediaNama was unable to verify this independently.
According to the company’s annual report, Infibeam gave unsecured, interest-free loans of Rs 135 crore ($18.6 million) to related firms for business operations as of March 31, per Livemint.
The massive movement led to the company releasing a statement to exchanges, saying that there was no pending information or announcement that may impact its share price. It appeared to have only made a slight difference as the company’s stock recovered from a day’s low of Rs 53.80 to close at Rs 58.80. The company is scheduled to have it annual general meeting (AGM) on Saturday.
Infibeam posted a net loss of Rs 13.9 crore in the quarter ending June (Q1 FY19). This was down a staggering 210% from the Rs 12.7 crore net profit it reported in the same quarter last year. The company made a net loss of Rs 2.2 crore in the preceding quarter Q4FY18.
Recent Infibeam moves
- In June, the company appointed Jason Kothari as President.
- In June, CCAvenue announced Intent, a UPI payments flow on its payment gateway
- In June, the company also sought shareholder approval to raise up to Rs 2,000 crores and to apply for a Payments Bank and a Prepaid Wallet license with the RBI.
- The company relaunched its ‘.OOO’ domain service through global registrars and made it available to users globally to buy ‘.OOO’ domains.
- The company claims to have launched an advertisement platform through which the Company will operate an affiliate network program in India.