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Mumbai, Oct. 10 Shares of Mumbai-based IT firm Core Projects & Technologies were hammered badly on the bourses on Friday to close at Rs 140.65, 43 per cent lower than the previous day’s close.

According to rumours doing the rounds, the fall was due to brokerages selling the promoters’ shares (of Core Projects & Technologies) to meet margin calls following the steep fall in share prices.

The promoters of the company had pledged money with brokerages to raise funds for expansion purposes, according to market men.

However, the company denied any such move.

“We would like to clarify that we are not aware of any margin calls as suggested by you, which could have led to the selling of our stock,” the company said in an e-mail response to Business Line.

The company said that the liquidation of shares that arose out of the conversion of the FCCB’s issued by the company could be the major reason for this steep fall.

Core had issued FCCB’s worth $80 million in May 2007 at a conversion price of Rs 167. “We would like to inform you that a total of 16, 75,000 shares were converted out these FCCBs in last one month. We believe that today’s steep fall in our share price could be due to the liquidation of these and other shares held by FCCB subscribers,” the statement said.

On a month-on-month basis, the company’s scrip was down by 50.17 per cent.

Adith Charlie

More Stories on : Stocks | Software | Ear to the ground

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