Lycos Internet Rebounds After 30% Loss in Previous Week

Shares in Lycos Internet, formerly known as Ybrant Digital, rebounded 15 per cent on Monday, after suffering nearly 30 per cent loss in the previous week.

The sell-off in its shares came despite the company reporting strong earnings for the quarter ending December 31, 2014.

The selloff in the stock forced the company to come up with a clarification on Friday. In a clarification given to Bombay Stock Exchange, the company said "misleading stories are being planted in the market by the persons with vested interests suggesting that the promoters are selling shares in the company."

Suresh Kumar Reddy, chairman and managing director at Lycos Internet, told NDTV on Monday that based on its conversation with most of the large stakeholders none of them are selling shares of the company. (Watch interview)

There is nothing wrong that has happened in the company, which can warrant this fall in the share prices said Mr Reddy. "Somebody is creating unwarranted issues in the market to get people to worry and create some sort of unnecessary panic," he added.

"We had good results...we got great feedback on our performance. We want to assure the retail investors that our growth has been organic, we urge you not to come under any influence," said Mr Reddy.

The promoters of the company held 39.13 per cent share in the company as of December 31, 2015 and it continues to hold the said quantity of shares as on February 06, the company had said in the clarification.

Lycos Internet reported a consolidated net profit of Rs 99 crore in the quarter ending December 31, 2014, against Rs 66 crore in the same quarter last fiscal, a growth of nearly 50 per cent.

Shares in Lycos Internet ended 8.56 per cent higher at Rs 36.15 apiece, outperforming the broader Nifty, which closed 1.56 per cent lower on Monday.