Infibeam sinks on back of rumours

The stock of Infibeam Avenues had a free fall on Friday. The stock dipped more than 80 per cent intraday. It touched a new 52-week low of Rs. 69.15 per share.

The stock price fell by 62.59 per cent while volumes rose by 986.95 per cent compared to the stocks 5-day moving average volume at 14:30 hours.

Infibeam Avenues voluntarily released a communication during the day staying that the company is not aware of any new development about is operations or performance that had any drastic bearing on its stock price. The company added that there is no pending information or announcement which can explain the price behaviour of the scrip.

However, there was rumour in the market that the company had given a interest-free loan to a subsidiary which is struggling with high debts. The BSE exchange has asked the company to clarify its stand on the same.

Infibeam Avenues provides IT solutions for E-commerce platforms and sites. The company also hosts a shopping website for books, electronics and mobiles at low price.

The stock opened at a loss of 3.82 per cent, continuing its downward trend for the fourth consecutive session. The stock closed at Rs. 58.80 per share, down by Rs. 138 or 70.24 per cent on Friday. Meanwhile, the benchmark index recovered most of its losses and closed at 36,227.14, down by 97.03 points or 0.27 per cent on Friday.