Shares of debt-ridden travel firm Cox and Kings fell 3.5% intraday in Friday's early session after the Enforcement Directorate (ED) arrested the company's promoter Peter Kerkar in connection with a money laundering case.
The alleged scam is estimated at a little over Rs 20,000 crore and involves many banks across India that gave loans to the travel company but never got them back. The firm was also one of the biggest defaulters under YES Bank and owes over Rs 2,267 crore to the lender.
The company was sent to bankruptcy court in October 2019 after it defaulted on payments. Earlier, it was promoted by Kerkar and his family. As per ED, the firm owes Axis Bank Rs 1,030 crore, IndusInd Bank Rs 239 crore, and Kotak Mahindra Bank Rs 174 crore.
Following the news, share of the firm opened at the day's low of Rs 1.35, falling 3.5% against the last closing of Rs 1.40. The stock also hit the day's high at Rs 1.45 but soon erased gains.
Cox & Kings stands higher than 5, 20, 50, 100 and 200-day moving averages. Cox & Kings stock has risen 3.6% in the last 2 days. The stock has gained 3.6% in one week and 9% in one month. although, it has fallen 25% in the last one year and 99% in the last 3 years.
Cox & Kings share has touched a 52-week high of Rs 2.31 and a 52-week low of Rs 0.48, respectively. The company's market capitalisation stands at Rs 25.43 crore.
In September quarter, revenue from operations came in at Rs 430.2 crore as against Rs 2171.3 crore in a year-ago period. Company's losses during the quarter under review stood at Rs 6,645 crore as against profit after tax of Rs 1377.5 crore last year.
Earlier this month, the Central Bureau of Investigation (CBI) filed an FIR against Ezeego One Travel & Tours Limited, a sister company of Cox & Kings, for defrauding YES Bank by over Rs 900 crore. The agency has booked senior executives Ajay Ajit Peter Kerkar, Urrshilla Kerkar, Neelu Singh, Arup Sen, Manisha Amarapurkar, Pesi Patel, and Karthik Venkatraman. The agency said in the FIR that it was found that the company was involved in the diversion of funds to Cox & Kings.
In October, ED arrested two former senior officers of the debt-ridden travel firm, CFO Anil Khandelwal, and internal auditor Naresh Jain under the Prevention of Money Laundering Act (PMLA) as part of its money-laundering probe against the private lender YES Bank's founder Rana Kapoor.
The share of Cox & Kings closed 2.88% higher at Rs 1.44 on BSE.