Shares of Videocon Industries today plunged nearly 12 per cent on the BSE, a day after reports that the World Bank has barred the company from doing business with it for three years for indulging in fraudulent and corrupt practices.
Shares of Videocon Industries opened weak on the Bombay Stock Exchange and later tanked 11.69 per cent to a low of Rs 200.
On Tuesday, it was reported that the World Bank (WB) has barred Videocon Industries from doing any business with the Bank for three years, beginning January 11, 2010, for violating procurement guidelines.
On the National Stock Exchange, the stock fell 8.12 per cent to a low of Rs 208.15.
A total of 21,35,280 shares of Videocon Industries changed hands on both the bourses till the mid-afternoon session.
The World Bank has included Videocon in the list of companies that are not eligible for contracts funded by it.
Videocon was sent a letter of reprimand subsequent to an administrative process permitting the company to respond to
the allegations, the World Bank said in its latest update of companies blacklisted for doing business due to fraud and corruption charges.