Shares of leading spirits company Allied Blenders and Distillers recovered from the lows of the day, though still down by 2.8 percent, after the distiller denied reports of any involvement in unfair trade practices in Andhra Pradesh, calling any regulatory action as 'speculative and factually incorrect'.
The distillery said, "we would like to hereby clarify that the Company has not received any communication from banks or from any regulatory authorities or enforcement agencies regarding such action. Hence, this news is speculative and factually incorrect."
The shares of Allied Blenders had taken a severe knock in trade on April 15, falling up to 8 percent after CNBC-TV18 reported citing people familiar with the development that the Andhra Pradesh government's Special Investigation Team (SIT) has ordered the freezing of the liquor company's bank accounts in the state, following an ongoing probe relating to a liquor scam.
"ABD has always operated in full compliance with the law and maintains highest standards of transparency and corporate governance," the statement added.
At close, Allied Blenders shares ended down 2.8 percent on the NSE, erasing a large portion of losses, following the clarification. Follow our market blog to catch all the live updates
On Monday, the SIT conducted a surprise raid on YSRCP IT advisor Kasireddy Rajashekar Reddy's residential and office premises, after he ignored three notices from the investigative body.
Allied Blenders shares have sunk over 12 percent over the past six months, as a risk-off sentiment gripped Indian equities.
Shares of the liquor firm made their stock market debut on July 2, 2024, posting a decent start after listing at Rs 320, a premium of 13.87 percent over the issue price of Rs 281. The maker popular whisky brand Officer's Choice had mopped up Rs 499.1 crore through its anchor book, with Societe Generale, Goldman Sachs, Troo Capital, BNP Paribas, 360 One Special Opportunities Fund, LIC Mutual Fund, and Jupiter India among the key investors in the issue.
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