March 4 (Bloomberg) -- NHPC Ltd., India’s biggest hydro-electric producer by capacity, is seeking information on the trading of its shares to determine the reason for the record plunge in prices, Finance Director A.B.L. Srivastava said.
The stock sank 24 percent to 19.65 rupees in Mumbai, the most since its debut on Sept. 1, 2009. As many as 357.3 million shares changed hands, about 20 times the three-month daily average, data compiled by Bloomberg show. The shares crashed as much as 31 percent earlier today and were the worst performers on the S&P BSE 500 Index, the data show.
“There must be some external factors behind the plunge,” Srivastava said today in a telephone interview. “The company’s fundamentals have not changed. They remain as good as they were two months ago.”
The company posted a profit of 3.1 billion rupees ($56 million) in the three months ended Dec. 31, the lowest in a year, after power generation fell about 9 percent to 2.6 billion kilowatt hours, according to an exchange filing. The shares advanced 67 percent from their all-time low on Sept. 13 to reach this year’s peak of 29 rupees on Jan. 31, according to data compiled by Bloomberg.
“The rally was not justified and was based on speculation,” said Sachin Mehta, an analyst with IFCI Financial Services Ltd. in Mumbai, who has a sell recommendation for the stock.
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