- Hot Pursuit
Zenith Infotech tumbles after defaulting on FCCB repayment
Zenith Infotech tumbled 10% to Rs 83.90 at 15.25 IST on BSE after the company said it has defaulted on repayment of $33 million foreign currency convertible bonds, which was due on 21 September 2011.
The company made the announcement after market hours on Thursday, 13 October 2011.
Meanwhile, the BSE Sensex was down 74.47 points, or 0.44% to 16,883.92.
On BSE, 2,448 shares were traded in the counter as against average daily volume was 2,997 shares in the past one quarter.
Today's low of Rs 83.90 is 52-week low for the counter. The stock had hit a 52-week high of Rs 271.95 on 15 October 2010.
The small-cap stock underperformed the market over the past one month till 13 October 2011, declining 50.69% compared with the Sensex's 2.53% return. The scrip had also underperformed the market in past one quarter, falling 56.78% as against 9.21% decline in the Sensex.
The company has an equity capital of Rs 12.68 crore. Face value per share is Rs 10.
Zenith Infotech said that the company is into negotiations with the bondholders to extend the time for repayment of the foreign currency convertible bonds (FCCBs) on which it has defaulted.
Zenith Infotech also said the company has received all monies due from Zenith RMM, LLC except for the amount to be held in escrow account, part of which the company plans to utilize for partial repayment of FCCBs.
The company further said that the management and promoters have not bought or sold any shares of the company in last one year.
Zenith Infotech's consolidated net profit surged 580.82% to Rs 4.97 crore on 16.75% fall in net sales to Rs 93.19 crore in Q1 June 2011 over Q4 March 2011.
Zenith InfoTech is a global technology leader providing back office software and services for remote monitoring and management, business continuity hardware and software, helpdesk services, and cloud computing for small and midsize businesses.
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