Shares of small-cap companies tumbled nearly 5 per cent in last seven sessions with the smallcap index hitting a fresh 52-week low of 13,099.46 on the BSE in intra-day trade on Monday. S&P BSE small-cap was currently trading at 13,185.96, up 0.51 per cent, recovering from previous session losses.
Data pertaining to BSE 500 constituent stocks reveal that 314 stocks slipped below their face value on February 18, 2019. Among the individual stocks, Adlabs Entertainment, Bombay Rayon, GTL Infra, IL&FS Transport, Jaypee Infratech, Punj Lloyd, Rolta India, Reliance Naval, Reliance Communication, Shriram EPC and Unitech were trading below their face value on the bourses.
According to market experts, the investor pulled out money from small-cap stocks amid uncertainty over upcoming general elections, while rising yields and a weak rupee also weighed on investor sentiment. Volatility may persist in the domestic market due to weak domestic macro numbers and ongoing trade conflict in the international market.
IL&FS Transportation Networks: A part of troubled Infrastructure Leasing and Financial Services (IL&FS), IL&FS Transportation Networks shares were trading at Rs 7.09, lower than its face value of Rs 10 on the Bombay Stock Exchange. The stock has lost up to 90 per cent in past one year after the company defaulted on interest payments. The government has constituted a board under the chairmanship of Uday Kotak to resolve the financial crisis at the debt-ridden Infrastructure Leasing & Financial Services (IL&FS) group.
Reliance Naval and Engineering: Anil Ambani-led Reliance Group company has tumbled nearly 80 per cent in last one year to Rs 8.91, slipping below face value of Rs 10 each, after the company's net loss for the nine months ended December 2018 widened to Rs 1,082 crore from Rs 547 crore in the previous corresponding period.
Reliance Communication: Shares of RCom shares hit a low of Rs 4.85 and touched below its face value of Rs 5 per share on February 6, 2019. The company had alleged that a few NBFCs, substantially L&T Finance and certain entities of Edelweiss Group, have invoked pledge of listed shares, causing substantial decline in market capitalisation.
Punj Lloyd: The infrastructure company has eroded 470 per cent of its market capitalisation in last one year from 20.5 levels to Rs 1.42 apiece as on February 18, 2019 after the company's net loss widened to Rs 2,795.06 crore in the third quarter of 2018-19 from Rs 183.9 crore in the year-ago quarter.
Adlabs Entertainment: Shares of the company, which owns the Adlabs Imagica theme park near Mumbai, have lost over 80 per cent of its market capitalisation in last one year to 9.13 levels from 55.7 as on February 19, 2018. The company reported a net loss of of Rs 42.15 crore in the quarter ended December 2018 as against net loss of Rs 35.73 crore during the previous quarter ended December 2017.
Edited by Chitranjan Kumar