Infibeam complains to IT minister, Sebi about Whatsapp message that reportedly triggered selloff, says report

Infibeam Avenues, India’s first listed e-commerce company, has complained to the government and Securities and Exchange Board of India about a WhatsApp message that wiped off 73 percent of share price on  September 28, The Economic Times reported.

Last week, a WhatsApp message, allegedly attributed to brokerage Equirus, raised questions on Infibeam’s accounting policies and corporate governance, said the report, adding that the note also mentioned that the company gave an interest-free and unsecured loan to a subsidiary with negative net assets to be repaid over eight years.

It further said that the company has re-classified its co-founder, who continues to hold a large chunk of shares, as non-promoter, according to the report

The same day, Equirus Capital denied issuing any such note, said The Economic Times report.

The message reportedly led to large sell-off in shares, a 71 percent fall in price to Rs 57.90, the steepest single-day fall in share price of any company since Satyam Computer Services shares crashed 83 percent on January 7, 2009.

Infibeam clarified its position on the same day to both stock exchanges stating that it has done no wrong, and that has strong fundamentals, said the report.

The ET report said that on Sunday, Infibeam after its late meeting with top officials, complained officially to Ravi Shankar Prasad, minister of ministry of electronics and IT, who also holds law and justice ministry in its portfolio and Sebi about the rumours.

(Source: CNBC TV 18)