Shares of Gujarat-based fruit juice maker Manpasand Beverages have lost about 44% of their value in the last five days with huge consecutive drops seen in last two days after Deloitte resigned as the statutory auditor.
Shares of Gujarat-based fruit juice maker Manpasand Beverages have lost about 44% of their value in the last five days with huge consecutive drops seen in last two days after Deloitte resigned as the statutory auditor. Manpasand Beverages share price saw straight declines of 20% each on 28 and 29 May 2018, respectively on surprise exit of Deloitte Haskins & Sells from the post of statutory auditor of the firm. Following the blow over rout in share prices, Manpasand Beverages termed the resignation as “very unfortunate” and clarified that the decision has been taken by management and was in “the best interest of our shareholders”.
Despite management’s outright clarification, Manpasand Beverages shares crashed 20% again on Tuesday, 29 May 2018, slipping below its issue price. Manapasand Beverages fixed the issue price in the range of Rs 290-320 per equity share during the IPO (Initial Public Offering). While today, Manpasand Beverages shares tanked 10% to a 52-week low of Rs 247.9 on NSE while the stock crashed to a 52-week low of Rs 248.3 on BSE after the respective exchanges revised the price band limit to 10%.
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Earlier yesterday, 29 May 2018, BSE had sought clarification from Manpasand Beverages with regard to media reports of the company failing to share data with the statutory auditor Deloitte Haskins & Sells. The reply from Manpasand Beverages was awaited up until 11:10 am, as on 30 May 2018.
In order to calm down the panicky amidst market participants over the sudden exit of Deloitte and cancellation of the board meeting, Manpasand Beverages on Monday stated: “everything related to financial results announcement and the timing of this event is purely coincidental and has no direct correlation.” “The board meeting has been postponed and the new date will be announced shortly,” Manapasand Beverages said in a statement.
“This is just a minor hiccup and doesn’t represent any long-term business impact. Manpasand Beverages has always focussed on maintaining a sustained business growth. We still have a long way to go to achieve our high ambitions and we are well on our way. We hope for the continued support of our shareholders and stakeholders in this process,” Manpasand Beverages said further.
With such as sharp reduction in the share prices, Manpasand Beverages had lost Rs 2,262 crore (approx) in the market capitalisation. As per the last trading price on Wednesday, 30 May 2018, Manpasand Beverages commands a market capitalisation of Rs 2,842 crore versus a market capitalisation of Rs 5,104 crore as on 25 May 2018. In August 2017, Manpasand Beverages declared bonus issue of equity share in a ratio of 1:1.