IVRCL shares came under huge selloff for a second straight session following the collapse of an under construction flyover being built by the company in Kolkata yesterday.
"The Vivekananda Flyover project in Kolkata, under execution by IVRCL, has suffered an accident caused by an under construction section falling down... Such an incident has occurred for the first time in the company's history," IVRCL said in a statement to the Bombay Stock Exchange on Thursday.
Hyderabad-based IVRCL, which was contracted to build the flyover, called its collapse an "act of God". Its office has been sealed and a case has been registered against the company.
IVRCL shares, which closed down 5 per cent yesterday, slumped over 12 per cent to their 52-week low of Rs 5.60 on Friday.
Like most other infrastructure companies, IVRCL is reeling under huge debt, which has weighed on the company's performance and stock price. As of December 31, 2015, the company had a debt of over Rs 10,000 crore. IVRCL had reported a net loss of Rs 304 crore and total income of Rs 448 crore in its third quarter.
IVRCL shares closed 11.72 per cent lower at Rs 5.65 as against a 0.3 per cent fall in the broader Nifty.
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