8K Miles, Dilip Buildcon, Finolex Industries hit 52-week lows

A broker reacts while trading at his computer terminal at a stock brokerage firm in Mumbai (Photo: Reuters)
Shares of 8K Miles Software Services, Dilip Buildcon, Finolex Industries, Kwality, Essel Propack and Repco Home Finance from the S&P BSE 500 index hit their respective 52-week lows on the BSE in an otherwise firm market on Wednesday.

At 11:07 am; the S&P BSE Sensex was up 0.35% or 125 points at 35,287 on the BSE. On comparison, the S&P BSE Midcap (down 0.74%), S&P BSE Smallcap (down 0.52%) and the S&P BSE 500 index (down 0.08%) were trading lower up to 1%.

8K Miles Software Services has locked in the lower circuit for the third straight day, down 5% at Rs 112 on the BSE. There were pending sell orders for 474,478 equity shares on the NSE and BSE.

The stock of cloud computing firm was trading at its lowest level since August 28, 2014. It has fallen 89% from its record high level of Rs 1,024, touched on November 29, 2017, on the BSE in intra-day trade.

On Friday, October 12, 2018, 8K Miles informed the stock exchanges that it has filed criminal complaints with Chennai police and Sebi against Quantum Global Securities and Kumar Sharebrokers for "illegally" selling  8.42% of shares of its promoter and chairman Suresh Venkatachari.

8K Miles Software Services said that it has been informed that 2.57 million equity shares (8.42% of total equity holdings) held by Suresh Venkatachari, promoter of the company, in his demat accounts held with Quantum Global Securities and Kumar Share Brokers have wrongfully and illegally transferred through off-market transactions on various dates to various parties without his knowledge/consent.

The Company has been informed that he has taken legal action and has also filed a police complaint on September 17, 2018, against Quantum Global Securities and Kumar Share Brokers and others for fraudulent and unlawful transactions by wrongfully and illegally transferring his shares of the Company.

Dilip Buildcon slipped 10% to Rs 487 on the BSE in intra-day trade. The stock of roads & highways construction firm has fallen 36% in past one month, against a 6% decline in the benchmark index.

Atlanta, IRB Infrastructure Developers, Simplex Infrastructure, Ramkay Infrastructure, RPP Infraprojects, and NCC were down 20% to 36% during past one month.

“Banks are becoming conservative in lending to private players in the roads and highways sector given the problems players in the infrastructure sector are grappling with. The problem is especially acute for mid-sized players who have recently won projects from National Highway Authority of India (NHAI). Banks have misgivings about the balance sheet strength of such players and their ability to absorb a financial hit in case the projects are delayed. Banks are also uncomfortable because of wide discrepancies in costs estimated by the bidder and NHAI in a number of cases,” the rating agency CRISIL said in infrastructure sector update.

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