Shares of Sigachi Industries Ltd on July 2 extended their losses for 3rd day as the firm gave updates on fire incident at Telangana facility in Pashamylaram.
The company said fire accident at Telangana unit resulted in loss of 40 team members and over 33 got injured.
"Since the time of the accident, we have been coordinating the emergency response, family support, and extending cooperation with the investigation and compliance efforts. Sigachi Industries Ltd has committed to an ex-gratia compensation of Rs 1 crore to the families of the deceased, while those injured will receive full medical and rehabilitation support," said the company in a stock exchange filing.
At 12:56 pm on July 2, Sigachi's shares were trading 6.67% lower at Rs 42.98 apiece, thus extending their losses in last three days to nearly 24%. The market capitalisation of the stock is Rs 1,640 crore.
The company clarified that the accident was not caused by a reactor explosion at the plant.
Sigachi Industries on Monday said production at its Hyderabad plant, which saw a fire incident, leading to the death of several workers, would be paused for around 90 days to restore affected equipment and structures.
Sigachi Industries is a pharmaceutical company engaged in Active Pharmaceutical Ingredients (APIs), Intermediates, Excipients, vitamin-mineral blends, and Operations and Management (O&M) services, according to the company’s website.
The Sangareddy police, based on a complaint by a family member of one of the victims, on Monday registered an FIR against the factory management in connection with the explosion under Sections 105 (culpable homicide not amounting to murder), 110 (attempting to commit culpable homicide), and 117 (Voluntarily causing grievous hurt) of BNS.
Chief Minister A Revanth Reddy on Tuesday said the state government will engage with the management of the firm to ensure that a compensation of Rs 1 crore is paid to each kin of those who died in the horrific accident.
The CM also said those who are seriously injured will receive Rs 10 lakh, while those who are injured but can resume work after some recovery will be provided Rs 5 lakh.
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