ET: Deferred fund raising, trouble at associate hit Quess Corp stock

5 July 2019: Quess Corp’s decision to defer fund raising and bankruptcy at an associate that owes the staffing company about Rs 150 crore, or three-fifth of FY19 profits, have roiled investors, sending the stock to a fresh yearly low in a precipitous plunge that began four days ago.

Through a deal with associate Trimax Smart Infraprojects, Quess provided hardware, software, maintenance and technical support to Trimax IT Infrastructure & Services. Trimax executed an agreement with Smart City Ahmedabad Development, a government entity, two years ago for supply, installation, commissioning and operation and maintenance of a pan-CIT infrastructure and intelligent command and control centre for the Ahmedabad Smart City.

The NCLT Mumbai Bench, on February 21, had acted upon a Corporation bank plea to begin the resolution process at Trimax. The lender had declared Trimax as an NPA on March 31.

The resolution professional handling the insolvency process acknowledged Rs 151 crore as debt due to Trimax Smart Infraprojects.

Quess Corp’s CMD Ajit Isaac told ETNow in an interview that the smart city project of Ahmedabad is almost complete.

“For the Rs 200-crore project, we have collected about Rs 55 to 60 crore,” Isaac said in the interview to ETNow.

The Economic Times reported

Categories: General News, India Bankruptcy

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