GNFC hits a new low

The new year does not seem to have begun on a good note for Gujarat Narmada Valley Fertilisers & Chemicals (GNFC).

The company announced yesterday evening that it has received a Demand Notice from the Office of Controller of Communication Accounts, Department of Telecommunications (DoT), Ministry of Communications, Gujarat Telecom Circle.

The demand notice was received on 27th Dec, directing it to deposit the total outstanding amount of Rs. 15,020 crore (inclusive of interest amount) before 23rd January, 2020.

This pertains to financial years from 2005-06 to 2018-19 in connection with V-SAT & ISP Licenses held by the company.

The company said that it is presently examining said Demand Notice and judgement of Hon'ble Supreme Court of India by seeking expert legal advice in the matter. Based on the legal advice, the company will decide the future course of actions in the subject matter.

Following this news, the stock price today hit a new 52-week low at Rs.155.15; it has recovered from this low and is currently trading at Rs.160 levels, down over 1%. Its market cap stands at Rs.2500 crore.