Videocon at 52-week low on buzz of insolvency plea

Videocon Industries was locked in a lower circuit in early morning trade on Thursday following the news that the National Company Law Tribunal (NCLT) admitted a plea from lenders to initiate a resolution process.

Videocon’s lenders have an exposure of over Rs. 20,000 crore, of which SBI’s dues are about Rs. 3,900 crore.

The debt-ridden Videocon earlier approached the principal bench of NCLT on April 25 to request the court to consolidate all multiple insolvency cases filed by lenders against the company at three different courts of NCLT and hear them together.

Videocon is in the second list of 28 defaulters by the Reserve Bank of India under the Insolvency and Bankruptcy Code.

At 11:10 hours, Videocon Industries was trading at Rs 8.65 per share, down Rs. 0.40 or 4.42 per cent on NSE. The scrip opened at a 52-week low of Rs. 8.40 per share on NSE. The scrip has a 52-week high of Rs. 40.15 on NSE. The stock attracted a trading volume of 7,08,994 shares on NSE.