"Is Market Ignoring Fundamentals?" Infibeam To Shareholders A Day After Stock Falls 71%

During Friday's session, the company said there was no pending information or announcement that may impact its share price.

'Is Market Ignoring Fundamentals?' Infibeam To Shareholders A Day After Stock Falls 71%

Infibeam share price: The stock had plunged 71% on Friday

Infibeam shares gained some ground on Monday, but were far from recovering the losses registered in the previous session. Shares in Infibeam, an online retailer, had plunged 70.2 per cent last Friday. During Friday's session, the company had said in a regulatory filing that there was no pending information or announcement that may impact its share price. On Monday, Infibeam shares gained 14.2 per cent to close at Rs 67.15 on stock exchange BSE. On the National Stock Exchange, Infibeam shares rose 12.7 per cent to settle at Rs 65.85 for the day.

Shares in Infibeam had on Friday closed at Rs 58.8 apiece on the BSE, as against the previous day's closing price of Rs 197.55. "There is no pending information or announcement from the Company which may have a bearing on the price behaviour in the scrip," Infibeam had said during market hours on the same day.

(Also read: WhatsApp message destroyed 71% of a company's value in a single day)

"Some WhatsApp rumours took rounds in the market and it created panic among market participants and investors at large. We categorically rescind such rumours which are erroneous and motivated," said Infibeam managing director Vishal Mehta, in an address to shareholders at the company's annual general meeting the next day.

"We would like to state that, we proactively wrote to stock exchanges to convey to our shareholder and stakeholders that we are fully compliant, and that there is no pending information or announcement from the Company which may have a bearing on the price behaviour in the scrip," he said.

The company's revenue in financial year 2017-18 increased 90 per cent to Rs 839 crore. Its profit after tax doubled to Rs 88 crore during the year, Mr Mehta said.

"We are clueless, about what went wrong with our share price in the stock market. When working of the company is strong and prospects are brighter than ever before, is market ignoring fundamentals?" he said.

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