Diamond Power Infra relatively recovers at closing, calls scam reports false
While all attentions glared at the dauntingly massive scam of PNB involving Nirav Modi, media reports about another scam in the financial markets surfaced on Friday, involving power transmission and distribution company Diamond Power Infrastructure.
According to media reports, Diamond Power Infrastructure allegedly produced fake documents to raise loans worth Rs. 415 crore from various banks. However, the company issued a statement clarifying that the company has borrowed a total sum of Rs. 125.05 crore from IOB, UCO Bank and SICOM, on the back of mortgage of fixed assets including plant, machinery and real estate.
On the stock exchanges, Diamond Power Infrastructure plunged sharply on Friday. The stock hit an intraday high of Rs. 15.95 per share and an intraday low of Rs. 14.20 per share, down by almost 10 per cent on BSE on Friday. The stock slightly recovered towards the end, closing at Rs. 14.90 per share, down by 5.40 per cent on BSE. The stock hit its 52-week low share price by plunging to Rs. 14.20 per share. The stock dropped to a fresh 52-week low for the second consecutive trade session on Friday.
The company posted its third quarter results for the fiscal year 2018 on Thursday. Its net losses narrowed in Q3 FY17 to Rs. 2,970.24 crore from a net loss of Rs. 3,089.97 crore in the previous quarter of FY18. It massively narrowed on a yearly basis. The company had posted a net loss of Rs. 18,988.69 crore in the third quarter of FY17.