Videocon shares fall as lenders order forensic audit of accounts

NEW DELHI: Shares of Videocon Industries fell over 2 per cent on Friday after a SBI-led consortium of lenders ordered a forensic audit of the company to find out whether the company foundered because of adverse business conditions or financial mismanagement.

Following the development, the stock shed 2.74 per cent to close at Rs 23.05 on BSE. It opened at Rs 23.85 and touched an intraday high and low of Rs 23.85 and Rs 22.75 respectively.

The move is preliminary to the start of debt restructuring after the company defaulted on loans worth Rs 43,000 crore, sources familiar to the matter told ET.

A forensic report will also give lenders a clear idea of the liquidity position of the company, whether there has been any diversion of funds, misappropriation of assets, and non-compliance with regulatory norms, said bankers.

Shares of Videocon Industries have lost over 78 per cent in just 3 months since its close of Rs 104.15 on April 27, 2017.

Promoters held 62.37 per cent stake in the company as of June 2017.

The scrip touched its fresh 52-week high of Rs 114.90 on October 6, 2016 and its 52-week low of Rs 16.35 on June 27, 2017.