After being locked in lower circuit on Monday, shares of Manpasand Beverages continued to be locked in the same band on Tuesday as well as investors continued to be wary of corporate developments. This is despite the company trying to allay fears around the controversy surrounding its auditor, Deloitte, resigning abruptly.
The shares have lost 40 percent in this week based on two developments—resignation of its auditor and Board meeting on May 30 being cancelled. The stock touched an intraday high of Rs 275.85 and an intraday low of Rs 275.85.
On Monday evening, the company issued a statement to the exchanges, assuring investors that the situation involving Deloitte was ‘unfortunate’ but the decision was taken keeping in mind shareholders’ interest.
“Everything related to financial results announcement and the timing of this event is purely coincidental and has no direct correlation. The board meeting has been postponed and the new date will be announced shortly,” the company said in a filing to the exchanges. “This is just a minor hiccup and doesn't represent any long term business impact.”
The company on Monday had informed the NSE that a Board meeting, scheduled on May 30, 2018, which was supposed to consider results as well as dividend issue, was cancelled.
What could have added to the downfall is the company informing BSE on Sunday that its auditor Deloitte Haskins and Sells had resigned from the firm with immediate effect. It subsequently appointed M/s Mehra Goel and Co as the auditor of the firm.
At 09:38 hrs Manpasand Beverages was quoting at Rs 275.85, down Rs 68.95, or 20.00 percent, on the BSE. It touched a 52-week low of Rs 275.85.
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