Core Education stock recovers

K. S. Badri Narayanan Updated - February 26, 2013 at 12:46 PM.

The stock of Core Education, which plummeted over 62 per cent on Monday, recovered about 5 per cent around noon on Tuesday after the company clarified that the pledged shares were not sold in the market.

The stock is currently trading at Rs 115.70, up 4.3 per cent over the previous day’s close of Rs 110.95. The stock hit a high of Rs 122.70 in early trade on the BSE.

On Monday, talk of lenders diluting the shares that were pledged by promoters in the secondary market triggered a panic for the stock, which tumbled to a low of Rs 99 on the BSE after opening around Rs 287. 

Though the stock is not traded under F&O list directly, since it is a part of CNX-IT, which has derivatives contracts, no circuit filter is applicable to the stock.

The company had on Monday after market hours clarified that the financial institutions with whom the promoters have pledged are continue to hold the shares.

“The company’s business model continues to be intact with its strong order book of around Rs 1,000 crore from India spanning across next five years and about Rs 540 crore from the US,’’ it further added.

Published on February 26, 2013 07:16