Amid reports of Industrial Finance Corporation of India (IFCI) filing a winding-up petition in Hyderabad High Court,shares of Deccan Chronicle Holdings (DCHL) plummeted to a 52-week low of Rs 16.70,down 10 per cent on Monday. DCHL is the publisher of Deccan Chronicle and owns Deccan Chargers,the IPL franchisee from Hyderabad.
Analysts said the stocks of DCHL have been under pressure the entire last week. As a result,it opened at Rs 16.55,down from its Friday closing price of Rs 18.55,but gradually lost steam. Reports of the filing of a winding-up petition by IFCI only added to the weakness of the stock. DCHL owes around Rs 28 crore to IFCI. It opened the year with a cash of around Rs 400 crore on its books. It seems strange that the company does not have money to repay its loans, said a Mumbai-based analyst who tracks the company.
According to reports,IFCI had alleged that DCHL had almost become insolvent and wanted the High Court at Hyderabad to order the winding up of the company. DCHL was alleged to have defaulted on redemption of 250 unsecured redeemable NCDs on June 26 this year and owed Rs 27.80 crore to IFCI.