Companies scotch market rumours to stem share price slide

Hit by a sharp plunge in their share prices amid various market rumours, companies like Tulip Telecom and Pipavav Defence and Offshore Engineering today said "mischievous" speculations are being spread among investors.

A large-scale selling was witnessed in a host of mid-cap and small-cap companies yesterday amid speculations about high level of pledging of promoter shares and margin calls being triggered in these shares.

There were also rumours about some big market operator offloading large number of shares, as also concerning the sale of shares by Mauritius-based foreign entities in the market.

The stock exchanges, which function as front-line regulators, are also said to have sought clarifications from a number of such companies, whose stocks witnessed sudden plunge in yesterday's trade.

Among others, Tulip Telecom fell by 40% in the intra-day trade and closed 26% lower, while Parsvnath fell about 20%. Besides, Parsvnath Developers, Pipavav Defence and Era Infra, closed at the 20% lower circuit level yesterday.

Others to have witnessed sharp plunge yesterday included Monnet Ispat, Everonn Education, Radico Khaitan, SRF Ltd and Glodyne Technoserve. In most of these companies promoters have pledged significant level of their shareholdings.

Reacting to the sharp plunge in their share price, companies like Tulip Telecom and Pipavav Defence said that the rumours were mischievous in nature and no new development have taken place that can have impact the company's operations or business.

"It has come to the company's notice that its Stock Price has experienced unusual volatility, along with scrips of several other listed companies. The company would like to state that its business is as usual and that operations of the Company are in absolute order," Pipavav said.

"No new development has occurred that can have impact on the company's operations or business. The company requests its investors to ignore market rumours that are speculative and mischievous," it added.

Tulip Telecom also said, "its script has experienced an unusual price volatility, along with few other Indian corporates. Further the company has informed that, the operations of the company are in order and there is no new development which has taken place that has any material impact on the company's operations and business."

"No margin calls have been triggered against the stock of Tulip Telecom," it added.