Shares of Deccan Chronicle Holdings Ltd (DCHL) have plunged as the Bombay High Court ‘restrained’ the firm from selling or leasing its mortgaged properties in Mumbai. The court also ordered “attachment of six bank accounts of DCHL.”
The stock closed at Rs 12.87, down 4.95 per cent from its previous close on the BSE.
Analysts also say that attempts to sell the Deccan Chargers, the IPL team owned by the firm, have also not borne fruit so far. The company’s stock had been on the rise in the last few days on hopes that it could sell some of its assets to meet its debt obligations.
“The High Court order and the failed attempts at selling the team have been adding to investor worries,” said Madhumita Ghosh, Head of Research, Unicon Financial Intermediaries.
Promoters hold 73.83 per cent stake in the media firm, which reported a net profit of Rs 60.68 crore in FY 2011-12.
The Hindu Business Line competes with Financial Chronicle.