ZCZC
BCN-15
ECONOMY-INDIA-WHATSAPP
‘WhatsApp rumour’ wipes 70% off Indian firm’s stock
MUMBAI, Sept 29, 2018 (BSS/AFP) – Indian e-commerce firm Infibeam Avenues
lost around 70 percent of its market value on Friday, reportedly after
investors were spooked by a WhatsApp message.
The message circulating among traders raised concerns about the firm’s
accounting practices on the eve of a shareholders’ meeting, Bloomberg News
reported, sparking the major selloff of its shares.
The Gujarat-based firm put out a statement seeking to calm investors’
nerves, saying that “no pending information or announcement” was due that
would impact its stock price.
But this failed to assuage fears as the stock nosedived further to close
down 70.24 percent at 58.80 rupees.
The WhatsApp message was sent a few months ago by an analyst to some
clients and resurfaced on the messaging platform Thursday, Bloomberg quoted
unnamed sources as saying.
The company was scheduled to have its annual general meeting on Saturday.
It operates business-to-consumer and business-to-business e-commerce
platforms, the company website says.
BSS/AFP/HR/0935