SREI hits 52-week low on 'alleged' promoter fraud

Moneycontrol Bureau

SREI Infrastructure Finance shares hit a 52-week low at Rs 31.20 on the Bombay Stock Exchange following a probe on the promoters of the company for misappropriating funds to the tune of Rs 300 crore to some private institutions.

According to media reports, Viom Networks in which SREI has 18% stake has appointed KPMG to assess the extent of the graft, if any, after a former company secretary alleged that the Canarias have conducted this kind of a fraud.

A SREI Group company, VIOM Networks is a joint venture between Tata Teleservices and Quippos and is a major player in the telecom infrastructure industry.

Meanwhile, in a late evening statement on Tuesday, Viom said the shareholders, board and management of Viom Networks were committed to the highest standards of corporate governance and the action to conduct a probe reflected that philosophy.

In an interview with CNBC-TV18, Hemant Kanoria, director of Viom and CMD of SREI said the KPMG report will be ready within six weeks. He further explained that on July 25, the company secretary was fired because of impropriety by the CEO. "After he got fired, he made allegations on various officials for misconduct. Hence, we felt it necessary to get the company audited by KPMG." Read This: KPMG probing ex company secy allegations: Kanoria

Have a look at SREI's share price movement in the past 12 months

Company: SREI Infrastructure Finance Ltd
Period	Price	Latest Price	Gain/Loss (Rs.)	% Gain/Loss
3-Days	38.65	33.25	-5.40	-13.97
5-Days	40.85	33.25	-7.60	-18.60
7-Days	40.15	33.25	-6.90	-17.19
15-Days	39.70	33.25	-6.45	-16.25
1-Month	36.90	33.25	-3.65	-9.89
3-Month	42.35	33.25	-9.10	-21.49
6-Month	42.90	33.25	-9.65	-22.49
9-Month	56.08	33.25	-22.83	-40.71
1-Year	57.01	33.25	-23.76	-41.68