Share of SREI Infra Finance slipped over 15% intra day after the firm said that an auditor appointed by Reserve Bank of India was conducting special audit of the company and its subsidiary, Srei Equipment Finance Limited.
Srei Infra share fell 15.64% intra day to Rs 5.66 against previous close of Rs 6.71 on BSE.
The stock has fallen after 2 days of consecutive gain. SREI Infra Fin share stands lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The share has lost 33.11% in one year and fallen 26.1% since the beginning of this year.
On BSE, volume in the stock rose to 11.31 lakh, higher than the 30-day average of 1.02 lakh. On NSE too, volume rose to 88.12 lakh today against 30 day average of 4.64 lakh. Later, the share closed 12.22% lower at Rs 5.89 on BSE.
"We would like to inform you that a special audit of the company and its subsidiary, Srei Equipment Finance Limited, is being undertaken by an auditor appointed by Reserve Bank of India (RBI) in the exercise of its powers under Section 45 MA(3) of the RBI Act, 1934," the company said in an exchange filing.
Apart from the RBI audit, another development led to negative sentiment around the stock. Rating agency Brickwork Ratings downgraded long-term ratings of the firm to BB from BBB-.
"Brickwork Ratings India Pvt Ltd (Brickwork) has revised the ratings for Perpetual Debt Instrument aggregating to Rs 10 crore of the company," SREI Infrastructure Finance said in a regulatory filing on November 21. The infra firm reported a fall of 91.5 percent in its consolidated net profit at Rs 4.72 crore in Q2 against net profit of Rs 55.37 crore in the year-ago period. Sequentially, the profit was also down from Rs 23.01 crore posted in the June quarter of the current fiscal year.
Consolidated income of the company fell to Rs 1,182.21 crore in Q2 as against Rs 1,424.18 crore in the same period of 2019-20, it said in a regulatory filing. Consolidated assets under management stood at Rs 43,339 crore as on September 30, 2020, as compared to Rs 44,213 crore as on June 20, 2020, it said in a release.