Kwality share price: Kwality Ltd drop 5% to hit lower circuit as board postpones share buyback decision

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Updated: July 4, 2018 11:56:04 AM

Kwality share price has till July 3 (BSE closing level: Rs 21.70) plunged almost 81% since its closing at Rs 113 per share on 29 December 2017.

Kwality Limited sharesShares of Kwality Limited fell by almost 5% to its lower circuit limit on Wednesday.

Shares of Kwality Limited fell by almost 5% to its lower circuit limit on Wednesday after its board deferred its decision on share buyback, bonus issue of securities and payment of interim dividend. Kwality’s stock fell for the ninth consecutive session in the last 10 trading sessions since June 20. Since its closing at Rs 113 per share on 29 December 2017, the stock has till July 3 (BSE closing level: Rs 21.70) plunged almost 81%.

Shares of the dairy products maker fell by 4.86% on the NSE to a low of Rs 20.55 on Wednesday, which is the lowest level for the stock since October 2013. On the BSE, the stock price slipped by 4.83% to a low of Rs 20.65 per share following the board’s decision on Tuesday to defer its decision on the issues of buyback of securities, issue of securities and payment of interim dividend.

“It is informed that the proposed issues relating to buyback of securities and/or Bonus issue of securities and payment of interim dividend were considered by the Board today on merits,” the company said in a regulatory filing to the BSE on Tuesday. “Intense deliberations on the issues were initiated with Stakeholders both internal and external including Investors and Lenders,” the filing said.

The company said that the matter was intensely debated in context of current situation and future vision, after which the Board finally concluded to defer the decision on the issues for the time being. The board meeting, which was earlier slated for June 20, was rescheduled for July 3 due to non-availability of majority Directors.

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