Shares of the debt-laden Videocon Industries got locked in the upper circuit after rocketing 5% on news of Brazil oil block stake sale on Friday. According to a newspaper report, Videocon Industries is planning to raise nearly Rs 30,000 crore by selling its stakes in oil blocks in Brazil. Following the news, the stock of Videocon Industries surged heavily in the early morning deals and got locked in the upper circuit. Stock exchanges have sought clarification on the news and the reply from the company is still awaited.
Videocon Industries shares rose 4.94% to a day’s high of Rs 13.39 after opening up at Rs 13.35 on BSE. In the very quick successions, more than 5.82 lakh shares exchanged hands on both NSE and BSE with about 4.73 lakh shares on NSE alone. The stock of Videocon has been broadly falling over since a month. Videocon Industries shares made a 52-week high of Rs 109.8 (5 April 2017) and a 52-week low of Rs 12.1 (23 November 2017) on NSE, respectively. The current share price of Videocon Industries of Rs 13.35 on NSE is very close to that of its 52-week low of Rs 12.1.
Amid the rising concerns on fraudulent practices, as in the case of PNB-Nirav Modi fiasco so far, there were speculations that Videocon’s offices have been raided by investigative agencies, following which the company said that the rumours are false and malicious. “Videocon categorically asserts there is no substance to rumours that the company’s offices have been raided by any investigating agency. The contention of the said reports regarding chairman Mr Venugopal Dhoot is totally false and malicious. Members are advised not to fall prey to such rumors,” Videocon Industries said in an exchange filing on 8 March 2018.
Reportedly, the total debt of Videocon Industries stood at Rs 47,554 crore at the end of December 2015, according to data from the company’s annual report. The company has not filed its annual report for 2016 with the stock exchanges till date.
