GNFC slips 11% on closure of Dahej plant

Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) slipped 11% to Rs 481 on BSE after the company said that it has decided to close TDI-II plant at Dahej indefinitely following leakage.

“In the morning on 15th January, 2018, there has been a sudden leakage at TDI-II Plant, Dahej, which called for Plant shutdown at Dahej. Due to safety measures already put in place by the Company over a period of time, neither there is any property damage nor any loss of life,” GNFC said in a regulatory filing.

However, as a matter of abundant precaution, Management has decided to close the plant indefinitely till the root cause is thoroughly analysed, reviewed and necessary further safety measures to be taken are fully evaluated in addition to current safety precautions, it added.

GNFC believes in the principle of 'Safety First' and hence, this decision to close TDI-II Plant indefinitely is taken till the process of necessary preparations, putting in place further checks & balances and thorough evaluation is over.

In past two months, the stock rallied 25% against 6% rise in the S&P BSE Sensex till yesterday. It soared 12% on Monday.

At 02:18 PM; GNFC was trading 10% lower at Rs 486 against a marginal 0.08% decline in the benchmark index. The trading volumes on the counter jumped more than five-fold with a combined 7.78 million shares changed hands on BSE and NSE so far.