Mandhana Industries, Mandhana Retail Ventures locked in lower circuit

Mandhana Industries down 10% at Rs 41.15, while Mandhana Retail Ventures fall 5% at Rs 215 on the BSE

Shares of Mandhana Industries and Mandhana Retail Ventures have frozen at their respective permissible down limit on the bourses with no buyers were seen on the counters.

Mandhana Industries has locked in lower circuit of 10% at Rs 41.15 falling 14% from its early morning high on the BSE. Till 12:15 pm; a combined 2.52 million shares were changed hands and there were pending sell orders for 959,844 shares on the BSE and NSE.

In last week, the stock of Mandhana Industries had rallied 79% from Rs 25.60 to Rs 45.70 on Friday, as compared to 1% decline in the S&P BSE Sensex.

On the clarification sought by BSE for increase in the price of the scrip of the company, Mandhana Industries said there has not withheld any material information/event that in our opinion would have bearing on the price behavior of the scrip.

We further state that the price of the scrip may have increased on account of listing of the equity shares on 14th December, 2016 of The Mandhana Retail Ventures Limited, the Resulting Company pursuant to the Scheme of Arrangement for Demerger of retail division of the Company, it added.

The stock of The Mandhana Retail Ventures too locked in lower circuit of 5% at Rs 215, its lowest level since listing on December 14, 2016. A combined 75,732 shares changed hands and there were pending sell orders for 84,365 shares on both the exchanges so far.

On Wednesday, Mandhana Retail has informed BSE that ace investor Rakesh Jhunjhunwala has bought 12.7% stake in the company via off market deal.

In September 2014, Mandhana Industries has demerged its retail business and trading operations to Mandhana Retail Ventures and issued two equity shares for every three shares held by shareholders of Mandhana Industries.