Old WhatsApp message costs Indian firm 71% of its value

mumbai — India’s Infibeam Avenues Ltd lost 71 per cent of its market value on a single day after a WhatsApp message circulating among traders raised concerns about the online iPhone and iPad retailer’s accounting practices.

The stock collapsed as much as 73 per cent before closing 71 per cent lower at ₹58.45 on Friday in Mumbai.

Speculation mounted before a shareholder meeting on Saturday after a message attributed to brokerage Equirus Securities Pvt began to be distributed on WhatsApp, said Bhavin Mehta, an analyst at Dolat Capital Market Ltd. The message was sent a few months ago by an Equirus analyst to some clients and resurfaced on the messaging platform on Thursday, people familiar with the matter said, asking not to be identified as they aren’t authorised to speak on the issue.

The record slump on Friday prompted the company to make a voluntary clarification to exchanges saying there was no pending information or announcement that may impact its share price. The WhatsApp message alleged, among other things, that the company had given interest-free and unsecured loans to its units, the people said. Infibeam gave unsecured, interest-free loans of ₹1.35 billion ($18.6 million) to related firms for business operations as of March 31, according to the company’s annual report. —