Infibeam Avenues Ltd plummetted as much as 73% in the intra-trade on Friday owing to a WhatsApp message which claimed corporate governance issues in the company.
The circulated Whatsapp message addressed to brokerage Equiris questioned the accounting practised used by the company. According to the WhatsApp message, a subsidiary with negative net assets was given an interest free loan to be repaid in a time period of 8 years. Moreover, the message alleged that the company’s co-founder has been categorised as non-promoter.
The company did not recognise issuing any such note.
A spokesperson from Infibeam told ET that The company has given interest-free unsecured loans to its wholly-owned subsidiary NSI Infinium Global since inception. These loans are short-term loans which are repayable on demand and have been utilised by NSI solely for its business and operations
Infibeam’s price drop is one of the steepest falls after Satyam Computers Services which dropped 83% in a single day in 2009. Infibeam’s crash wiped out ₹9,200 crore investor wealth. It posted a market capitalisation of ₹3,900 crore from ₹13,105 after the trade. The company was trading ₹138.75 lower (-70.24%) to settle at ₹58.80 on Friday.