Investors sell off shares after forwarded message raises concerns about Infibeam Avenues’ accounting practices
Indian e-commerce firm Infibeam Avenues lost around 70 percent of its market value on Friday, reportedly after investors were spooked by a WhatsApp message.
The message circulating among traders raised concerns about the firm’s accounting practices on the eve of a shareholders’ meeting, Bloomberg News reported, sparking the major selloff of its shares.
The Gujarat-based firm put out a statement seeking to calm investors’ nerves, saying that “no pending information or announcement” was due that would impact its stock price. But this failed to assuage fears as the stock nosedived further to close down 70.24 percent at 58.80 rupees.
The WhatsApp message was sent a few months ago by an analyst to some clients and resurfaced on the messaging platform on Thursday, Bloomberg quoted unnamed sources as saying. The company was scheduled to have its annual general meeting on Saturday. It operates business-to-consumer and business-to-business e-commerce platforms, the company website says.