Penny stock update: Videocon gains by 47 per cent in just one month!

Videocon Group’s bankruptcy is touted to be the largest corporate bankruptcy in India.

Videocon has been in the news for all the wrong reasons and clearly is one of the biggest wealth destroyers' investors have come across in the past three to five years. The consumer durable company is believed to owe as much as Rs 85,000 crores to banks, vendors and its employees. Videocon Group’s bankruptcy is touted to be the largest corporate bankruptcy in India.

The Venugopal Dhoot promoted Videocon group was going through the insolvency process and owes its financial creditors,which constitute mostly public sector banks, a total of Rs 57,443 crore. A maximum of Rs 11,175 crore is owed to SBI followed by Rs 9,561 crore to IDBI Bank.

The stock however is up by more than 47 per cent in one months and was locked in upper circuit on Tuesday’s trading session. The stock trading at Rs 6.05 per share was up by 4.31 per cent with only bidders willing to buy the shares with no sellers. 

The beleaguered penny stock is buzzing on bourses because the bankruptcy court has allowed Anil Agarwal to take over Videocon. As per leading business daily the Anil Agarwal’s group- Vedanta  via Twin Star has won the bid to buy Videocon.  As per the reports almost Rs 3,000 crore will be paid by Twin Star to the lenders. Lenders are expected to take a huge hair cut in this deal- almost 90 per cent.

Over one year period Videocon is up by more than 332 per cent.