Kwality down 5% as board defers proposed share buyback and bonus issue plan

The stock is locked in lower circuit of 5% at Rs 20.65, falling 75% in past three months, as compared to 5% rise in the S&P BSE Sensex.

Shares of Kwality hit an over four-year low, locking in the lower circuit of 5% at Rs 20.65 per share on the BSE, after the company said its board has deferred the proposed share buyback and bonus issue. The stock of dairy products company was trading at its lowest level since October 8, 2013.

Till 10:41 am; a combined 260,000 equity shares were changed hands and there were pending sell orders for 1.6 million shares on the BSE and NSE.

“The proposed issues relating to buyback of securities and/or bonus issue of securities and payment of interim dividend were considered by the Board today on merits. Intense deliberations on the issues were initiated with stakeholders both internal and external including investors and lenders. The matter was intensely debated in context of current situation and future vision, the Board finally concluded to defer the decision on the issues, for the time being,” Kwality said in a regulatory filing on Tuesday after market hours.

On Monday, Sanjay Dingra, the promoter of Kwality, had sold 1.3 million equity shares of the company at price of Rs 22.07 per share through open market transaction, the exchange data shows. The name of the buyers not ascertained immediately.

According to shareholding pattern data filed by the company with the stock exchange reveals that the promoters holding in Kwality has declined by 9.18 percentage points to 54.76% in March 2018 quarter from 63.94% in December 2017 quarter.

In past three months, the stock plunged 75% as compared to 5% rise in the S&P BSE Sensex. It tanked 87% from its 52-week high of Rs 160, recorded on July 6, 2017 on the BSE in intra-day trade.