Supply chain infrastructure services provider Arshiya International fell 20 percent for the second consecutive session despite management clarification on top-level exits.
Shares of Arshiya International continued their free-fall on Thursday, crashing to the lower end of the 20 percent intra-day circuit filter with only sellers in the stock.
The stock is now down to Rs 77.95 after having plunged 20 percent on Wednesday too. Yesterday’s crash followed a report in DNA newspaper that the company had sacked several top-level employees. The report added that the fired employees in turn had hinted at financial irregularities in the company, which the management has denied.
The retail arm of Kotak Securities has suspended coverage of the stock, saying it would wait for clarity.
“The stock has declined by 40 percent over the last 12 months, largely driven by slowing economic growth which has led to less than estimated growth in segments like FTWZ/Container rail and high debt position. Given the above and lack of clarity on the alleged wrongdoing by the management we are suspending coverage on the stock till clarity emerges,” the Kotak note to clients said.
Promoters hold 44.59 percent stake in the company and institutions have more than 30 percent holding in the company.
Yesterday Trupti Sharad Shah bought 4.4 lakh equity shares of the company at Rs 112.48 a share via bulk deal on the National Stock Exchange.