After applying for insolvency, the condition of the lending banks is looking bad in the stock market. On the other hand, the shares of airlines companies are taking a hit. The question is now of those companies which like Go First are part of the Wadia Group. According to the data received from BSE, there was a huge decline in the shares of the remaining four companies of the Wadia Group. Shares of Britannia, Bombay Dyeing, Bombay Boomrah and National Peroxide saw a fall of one per cent to 10 per cent. Wadia Group’s decision regarding Go First is being seen as a setback for other companies as well.
What was the statement given by the CEO of the company?
Earlier, Kaushik Khona, CEO of the airline company clarified that the company has filed an application for Voluntary Insolvency Resolution Process and not for bankruptcy. This clearly means that the Wadia Group is not in the mood to exit the airline industry right now. As per the filing in NCLT, GoFirst owes Rs 6521 crore to lenders. The tribunal is going to start its hearing on 4th May. By the way, the airline’s market share in March was 6.9 percent. Now the company has canceled flights from May 3 to 5 due to non-payment of dues to oil companies and cash crunch. For which airline show cause notice has been issued by DGCA.
1 to 10 percent decline in four companies
On the other hand, the financial crisis of GoFirst has had a sentimental impact on other companies of the Wadia Group as well. Apart from the group’s flagship company Britannia Industries, shares of National Peroxide, Bombay Dyeing and Bombay Boomrah Trading Companies have seen a decline of 1 per cent to 10 per cent during the trading session. According to the information given to the stock market, GoFirst has taken inter-corporate loans from Britannia Industries, National Peroxide, and Bombay Boomrah Trading.
condition of wadia group companies in stock market
- Britannia’s stock fell by 1.44 per cent during the trading session. At 3 pm, it is trading at Rs 4520.50 with a gain of Rs 11.20.
- Bombay Dyeing’s stock had fallen by more than 6 per cent, at present it is down by 3.67 per cent at Rs 88.42.
- Bombay Boomrah Trading’s stock, which showed a decline of 10 per cent during the trading session, has come down marginally to 7 per cent and the company’s share is at Rs 966.50.
- Nationaler Peroxide’s stock saw a fall of Rs 1393.25 during the trading session, which is currently trading at Rs 1375, down 1.31 per cent.
Positive sentiment on Britannia continues
There is no shortage of cash in Britannia Industries, the group flagship company of Wadia Group and the balance sheet is also looking very strong. Expectations from the company are looking much better. For this reason, after the fall in the company’s stock in the beginning, positive business is seen again. At the same time, the atmosphere of decline is being seen continuously in other companies. Talking about the overall stock market, BSE is witnessing a fall of more than 200 points and NSE is down by 67 points.