After the shares of milk and dairy products manufacturer Kwality opened nearly 20% lower on Tuesday to hit a 32-week low, the management has stepped in to clarify that there is nothing fundamentally wrong with the company.
After the shares of milk and dairy products manufacturer Kwality shares opened nearly 20% lower on Tuesday to hit a 32-week low at Rs 60.35 on BSE, the management has stepped in to clarify that there is nothing fundamentally wrong with the company. The shares were seen locked in at the lower circuit. According to a report by CNBC TV18, Nawal Sharma, President and Head, Business Transformation, Kwality Dairy said that negative factors have affected the share price of the company. Notably, the shares have fallen by more than 30% in the last two days.
The shares have tumbled from from Rs 82.15 on Monday. On Tuesday, the stock slipped 20% to Rs 65.65 in intra-day trade, and settled 8% lower at Rs 75.40 on the BSE. This morning the shares opened more than 10% lower at Rs 60.35 on NSE. Notably, this implies a fall of more than 22% in the last two days.
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The company’s management says that it is investigating the activity of these negative forces. “The debt of the company stands at Rs 1,589 crore, and none of the pledged shares have been revoked,” CNBC TV18 reported the company’s CEO Nawal Sharma as saying.
Yesterday, the company had clarified that there is no significant event which is not reported by the Company to the stock exchanges. “The Company is continued to deliver sustainable value to its shareholders at all time,” Kwality had said with reference to Tuesday’s downfall.
In September-17 too a sharp decline in the company’s shares were observed, where the market had reportedly reacted to pledged shares being sold in the markets. Interestingly, the management had declined the news of pledged shares being sold in the market. Further, the management had said that that it is unaware of any significant information which is leading to the fall of the share prices.