02 Oct 2018_campuscad
India’s first listed e-commerce company Infibeam avenues lose its more than 73% of market capital on 28 September 2018 due to single Whatsapp message circulated among the traders.
Whatsapp message mentioned about the Infibeam’s accounting policies and corporate governance and the company has provided an interest free and unsecured loan to a subsidiary having negative net assets from past several years. In addition to these, company co-founder reclassified as a non-promoter.
This triggers the sell-off of shares by traders and brokers which leads to loss of the share value of the Infibeam by 73% in a day. As a result e-commerce Company lost almost INR 9200 Crore in market capital.
Infibeam denied all the allegations from the message saying it has strong fundamentals and not done anything wrong. Company explained the same to security exchange and Board of India (SEBI).
Founder and CEO Vishal Mehta wrote the letter to IT ministry” I would like to bring to your notice that the nuisance of rumors via Whatsapp, which is now not just limited to social disturbance but has also started creating economic disturbance. My company’s example aptly fit here”.
But the companies stocks are up by Monday after the explanation on the content of Whatsapp message.
Whatsapp rumors already cost lives in India and IT ministry already asked parent company Facebook to take down on the rumored and fake messages easy circulation and asked to set up data center in the country for Indian users.
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