India’s one of the most recognized internet and e-commerce conglomerate Infibeam which has been involved in digital payments, online retailing and e-commerce services has been through a huge controversy. It was found out that Infibeam has lost 71 percent of its market value on a single day just after a WhatsApp message circulating among traders raised concerns about the company’s accounting practices. Speculation surrounded before the scheduled annual general meeting (AGM) on Saturday after a message which was attributed to brokerage Equirus Securities Pvt and sent by one of its analysts to some clients and reemerged on the messaging platform on Thursday.
The Whatsapp message alleged, among other things, that the company had given unsecured loans to its units, and interest-free, people said. And according to the company’s annual report, the interest-free loans of Rs 135 crore to related companies for business operations as of March 31.
In a voluntary clarification to Bombay Stock Exchange (BSE), it cleared on providing timely information and clarifications as always. And there is no pending announcement from the company which may have a bearing on price behaviour that forced the shares of Infibeam Avenues plunged over 70 percent on Friday. According to some analysts, the stock was really expensive which explains it closed 70.24 percent down at Rs 58.80.
But, as per the news, if there is anything to blame then it is the fall on a crisis of confidence in mid-caps and small-caps. Besides, the investors confidence on mid-caps and small-caps have been shaky from awhile. And when that happens stocks have taken a hit.
Whatsapp message could be alleged because according to the stats a 50 percent drop on the counter was not unusual. The scrip had dropped 23 percent last Friday when it had an intraday swing of 73 percent. Last Monday it swung 22 percent and in last year Dec 29, it swung 66 percent.
So, there have been many wild swings on the intraday basis.