Shares of NIIT Technologies plunged over 5 per cent to hit intraday low of Rs 352 after the company informed the Bombay Stock Exchange that a dispute has arisen between its subsidiary and one of its clients.
In a statement to the BSE, "NIIT Technologies said that a dispute has arisen between one of its subsidiaries and client in the Asia Pacific region, which may result in claims and counter claims.
"The company is exploring various options to resolve the dispute. However, the company may have to provide upto $10 million towards future claims from the clients which will dent its profitability in the coming quarters," it added.
The shares of NIIT Technologies ended 6.4 per cent lower at Rs 351. Trading volumes on the counter surged as 41,000 shares changed hands on the BSE compared to average of 14,000 shares traded daily in the past two weeks.