Videocon shares dip after World Bank ban

Shares of Videocon Industries on Wednesday tanked nearly 12% on the BSE, a day after the World Bank barred the company from doing business with it for three years for indulging in fraud and corrupt practices. After opening weak on the Bombay Stock Exchange, Videocon shares fell 11.69% to a low of Rs200. On Tuesday, the World Bank (WB) barred Videocon Industries from doing any business with the bank for three years, beginning 11 January 2010, for violating procurement guidelines. On the National Stock Exchange, the stock plunged 8.12% to a low of Rs208.15. A total of 9,82,177 shares of Videocon Industries changed hands on both the bourses in the early trade. The World Bank has included Videocon in the list of companies that are not eligible for contracts funded by it. The firm 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.