Repco Home Finance dips after report of CBI raid

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Repco Home Finance dropped 4.74% to Rs 785 at 14:30 on after media reports suggested that the has filed a case of corruption, cheating, and conspiracy against the company’s top officials.

Meanwhile, the S&P Sensex was up 63.21 points or 0.23% at 28,124.35.

On BSE, so far 6.71 lakh shares were traded in the counter as against average daily volume of 9,451 shares in the past one quarter. At the day’s high of Rs 794 hit so far, the stock dropped 3.65%. At the day’s low of Rs 760.35 hit so far during the day, the stock slumped 7.73%. The stock had hit a record high of Rs 891.30 on 6 September 2016. The stock had hit a 52-week low of Rs 552.25 on 12 February 2016. The stock had underperformed the market over the past one month till 7 October 2016, falling 5.71% compared with 2.99% fall in the Sensex. The scrip had, however, outperformed the market in past one quarter, gaining 7.05% as against Sensex’s 3.16% rise.

The mid-cap company has equity capital of Rs 62.55 crore. Face value per share is Rs 10.

The reports also suggested that the raids were conducted following registration of a criminal case against the officials based on a complaint lodged by Coimbatore-based Durga Agency to which the company had given a loan.

Repco Home Finance in its clarification during market hours today, 10 October 2016 with regards to the report said that as per press reports it came to know that the (CBI) conducted searches at the residence of R. Varadarajan, Managing Director, V. Raghu, Executive Director and Kannan, the then Chief Manager of the company with regard to waiver of preclosure charges on 8 October 2016,

The company said that the event has no material impact on it. The company said it will intimate detailed updates on this matter as soon as it is in receipt of such information.

Repco Home Finance’s net profit rose 30.8% to Rs 39.53 crore on 23.4% rise in net total income to Rs 246.91 crore in Q1 June 2016 over Q1 June 2015.

Repco Home Finance’s main business is to provide loans for purchase or construction of residential house.