The shares of explosives-maker Solar Industries sharply plunged more than 3 percent on September 4, after the company reported an explosion at its Nagpur facility, which killed one and injured eight people.
In an exchange filing, the company said that the explosion occurred at 12.33 am in the crystallization building of the factory while performing crystallization process of an energetic material at its premises in Chakdoh, Nagpur.
"The safety mechanism systems got activated and people working in the area were evacuated as per the emergency procedure, before the explosion took place," Solar Industries said, while adding that the death and injuries occurred in areas near by this building, due to the shock impact of the explosion.
"The Company deeply mourns this loss of life and stands with the family of the deceased in this moment of grief. We have also intimated the departments concerned and the statutory authorities. The incident is being investigated for all the root and contributory causes and corrective and preventative actions to be implemented," Solar Industries added.
The company informed exchanges that the loss is limited to this building, as far as the financial impact is concerned, and there is adequate insurance coverage for the same.
Visuals shares by ANI showed police and rescue teams at the incident spot.
"The incident took place around 12-12:30 AM. When we saw smoke coming from the reactor, we all came out. After continuous smoke for around 20-25 minutes, there was a blast. Due to the blast, around 40-50 people got injured by stones," a worker told ANI.
Solar Industries shares dropped to as low as Rs 13,810 apiece after the incident was reported. The stock is currently one of the top losers on the Nifty India Defence index, as defence stocks see some profit booking after a four-day gaining rally.
Cochin Shipyard and Garden Reach Shipbuilders (GRSE) shares dropped nearly 3 percent each, while BEML and Astra Microwave Products shares fell more than 2 percent each. Bharat Dynamics (BDL) shares fell around 2 percent, while Bharat Electronics (BEL), Mazagon Dock Shipbuilders and Paras Defence shares were down around 1 percent.
(With inputs from ANI)
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