India Glycols falls 14%, arm's exposure to NSEL at Rs 125cr

Moneycontrol Bureau

India Glycols shares lost 14 percent in afternoon trade Tuesday on concerns that the company through its subsidiary has significant exposure to NSEL. NSEL stopped trading from July-end on liquidity crisis.

Rakesh Bhartia, CEO of India Glycols says the company through its subsidiary has expsoure to NSEL at Rs 125 crore. Total recovery from NSEL is only 3 percent, he adds.

"We will consider action on NSEL matter based on government steps and we have not made any provision on NSEL exposure," Bhartia says in an interview with CNBC-TV18.

NSEL, promoted by Jignesh Shah-headed Financial Technologies India suspended trading on July 31, raising concerns about possible default of Rs 5,600 crore.

Meanwhile, promoter Kashipur Holdings hiked its stake in the company by 1.35 percent to 33.23 percent in August. Total promoter holdings increased to 59.72 percent as of June 2013 from 54.88 percent in June 2012.

The company that manufactures glycols, ethoxylates and PEGs posted a loss of Rs 26.2 crore in April-June quarter as against profit of Rs 34.2 crore in a year ago period. Total income from operations dropped 15 percent to Rs 814.4 crore while operating profit slipped 29 percent year-on-year to Rs 73.8 crore and margin declined 180 bps Y-o-Y to 9.1 percent during the quarter.

At 14:57 hours IST, the stock was down 12.27 percent to Rs 89.70 amid hefty volumes on the Bombay Stock Exchange.