Mishtann Foods stock snaps 3-day losing streak as 2.3% equity exchanged in a block deal

According to Sebi's notice, the company inflated its sales and purchases by recording "fictitious transactions".

Snapping a three-day losing streak, shares of Mishtann Foods gained almost four percent on the bourses on December 11 after a large deal on the bourses.

Around 2.3 percent equity or 2.4 crore worth Rs 19.4 crore exchanged hands in a block deal window on December 11.

At 10.15 am, shares of Mishtann Foods were quoting Rs 9.28 per share, higher by 3.7 percent compared to the previous close.

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Over the previous three sessions, Mishtann Foods shares tanked over 40 percent. Investors dumped the stock after the company received a show cause notice from the market regulator, Sebi.

The show cause notice was issued over the company's Rs 100 crore fund which Sebi stated was misappropriated or diverted through group entities. SEBI's whole-time member, Ashwani Bhatia, had highlighted "misrepresentation of large proportions" in Mishtann Foods' financial statements.

According to Sebi's notice, the company inflated its sales and purchases by recording "fictitious transactions" involving "fake or non-existent entities." These entities were allegedly created using the names of Mishtann Foods' promoters and their relatives.

However, the company refuted Sebi's allegations while stating that its legal team is "making efforts to address the queries and take appropriate actions."

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