Hyderabad/Chennai, Aug 3 () : Market Analysts rule out the closure of Deccan Chronicle publications since as a brand name it can get institutional investors to bail it out from the present problem but many of them also advise shareholders to sell since in the long run the turnaround seems to be a difficult task.
Despite Deccan Chronicle Holdings Ltd (DCHL) Chairman T Venkataram Reddy terming the financial problems as mere liquidity crisis and that its assets were more than the debts it owed, investors continued to sell.
For the 11th day, the shares kept on falling. Today it dipped by over three percent. DCHL attributes the present crisis to fall in advertisements to their publications due to the poor market conditions globally and in domestic sphere. With losses mounting, the company resorted to borrowing.
Insiders say that DCHL stepping on to areas like IPL and retail bookstores was its undoing. Deccan Chargers finished at the bottom and it could be put up for sale but whether it will fetch Rs 500 cr as expected is in doubt. It could fetch around half the amount expected. The insolvency plea could easily be overcome and so also Karvy’s criminal complaint if required funds flow in.
The police complaint has given it a political twist. Even if Karvy has a rethink, the cops investigating the case can book the Chairman and his two kith and kin named in the complaint. This again depends on Kiran Reddy ministry who is not too happy with DC’s pro-Jagan stance.
Jagan before his arrest and coming in CBI scanner could have easily bailed out Reddy but now the situation is different. DC sitting number one in Andhra was given a way to turn `national’ by veteran scribe M J Akbar. The route was through Asian Age ( published from Mumbai and Bangalore) and from there to spreading to Tamil Nadu, Bangalore and Kerala.
The next step to go national was get on to IPL bandwagon. As reports show DCHL is truly national but as a news maker.