Arshiya Intl falls to new 52-week low despite mgmt comments

Shares of Arshiya International crashed more than 51 percent in 8 consecutive sessions to touch a new 52-week low of Rs 63.20 on Monday on news that the company laid off some senior employees and facing financial crunch. Even the comment of one senior employee to a newspaper saying it is like a Satyam scam hammered the stock quite badly.

Today The Economic Times reported that Ajay Mittal, the founder of cash-strapped logistics major, will raise close to Rs 130 crore by monetising promoter assets to revoke pledged shares and infuse fresh capital to tide over the existing cash crunch. "In addition, the company has also decided to put all its existing capital expenditure plans on hold for the next one year to tide over financial troubles," the report adds.

The report also says, "Arshiya's financial woes started after it was denied a loan of Rs 80 crore, forcing the company to invest an additional Rs 60-80 crore for its expansion plan at Khurja, straining the company's cash flows."

At 12:46 hours IST, the stock was locked at 10 percent upper circuit at Rs 63.20. There were pending sell orders of 3,457,141 shares, with no buyers available.
 
Also Read
Here`s what mgmt has to say
Kotak suspends coverage