GNFC tanks over 10% on heavy volumes

The stock tanked 20% to Rs 216 on BSE in intra-day trade on back of heavy volumes.

Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) has tanked 20% to Rs 216 on BSE in intra-day trade on the back of heavy volumes.

At 11:42 am, the stock was down 14% at Rs 231, after hitting high of Rs 270 in early morning deal. The trading volumes on the counter more than doubled with a combined 16.28 million shares representing 10.5% of total equity of GNFC have changed hands on BSE and NSE.

The Exchange has sought clarification from GNFC, with reference to news flashed on ET NOW dated November 03, 2016 stating "Dahej TDI plant shut down post gas leak”, BSE said. LINK

The reply is awaited.

GNFC on October 28, 2016 informed the BSE that N V Ratnani, one of the employee of the company, who is a ‘Designated Person’ within the meaning of Sebi Regulations, has violated the code of conduct Sebi Insider Trading Regulations, 2015, by acquiring 7,500 shares, at a total value of around Rs 16 lac, during the period from October 15, 2016 to October 21, 2016, which is in excess of the threshold limit of Rs 10 lac, without undergoing the procedure of pre-clearance from the compliance officer of the company.

During the period, the stock had rallied 25% from Rs 194 to Rs 242, as compared to 1.5% rise in the S&P BSE Sensex.

The stock closed a record high of Rs 282 on October 25, appreciated 105% from its recent low of Rs 138 touched on August 10. The benchmark index gained 1.1% during the same period.

GNFC board will meet on November 10, 2016, to approve the unaudited financial results for the second quarter / half year ended September 30, 2016.

For the first quarter ended June 30, 2016 (Q1FY17), the company had posted a standalone net profit of Rs 51 crore against a net loss of Rs 9 crore in Q1FY16.