Vakrangee shares have been locked in the lower circuit for the fourth straight day losing over 50% in the last six days despite the company's management denying rumours of price and volume manipulation.
Vakrangee shares have been falling since the last six days of trading and have dived over 50% despite company’s management denying rumours of price and volume manipulation. Shares of the speciality retail company have fallen 53.19% to Rs 236.4 in the six days on NSE. The stock of Vakrangee had been locked in the lower circuit for the fourth straight day on Monday. On 31 January and 1 February 2018 each, shares of Vakrangee saw a steep plunge of 20%. Following a sharp decline in the share prices of Vakrangee over the last six days, about Rs 28,434.16 crore has been washed away from the market capitalisation of the company. As on Monday, Vakrangee commands a market capitalisation of Rs 25,072.46 crore on BSE.
A heavy trading volume has been observed in the shares of Vakrangee from 29 January to 1 February 2018. Today only, more than 42.6 crore shares exchanged hands on both NSE and BSE with about 42.3 crore shares on NSE alone. The stock of Vakrangee shed 10% to a day’s low of Rs 236.8 on BSE on Monday.
Reportedly, Vakrangee was facing a probe from Indian capital market regulator SEBI for the alleged stock price and volume manipulation. Following the sharp decline in the share prices, stock exchanges have sought clarification from Vakrangee Ltd on 2 February 2018, with reference to decrease in Price, to which the company has replied on 3 February 2018 in a media press release.
“Vakrangee would like to highlight that we have not received any communication either from stock exchanges or Security Exchange Board of India (SEBI). The rumours of involvement of company in price and volume manipulation are completely baseless and factually incorrect,” Vakrangee said in a press release. “We are extremely confident of our business model and continue to grow steadily. We are well on track to achieve our Vision 2020 target of 75,000 Vakrangee Kendra outlets by 2020 with $2 billion of revenue and covering each postal code of India,” Vakrangee said further.
Meanwhile, India’s stock market extended the losses amid the global sell-off led by a downturn in sentiments followed by uncertainties over US job market, the introduction of a tax on LTCG on equity over Rs 1 lakh in India and subdued action ahead of RBI’s repo rate decision. The S&P BSE Sensex tanked 545.95 points to hit a day’s low of 34,520.8 whereas NSE Nifty plunged 173.8 points to hit a day’s low of 10,586.8 on Monday, nearing its one-month low of 10520.1. As at 1:35 pm, Sensex was trading 1.02% or 359.28 at 34,707.47 while Nifty was trading 96.7 points or 0.9% lower at 10,674.