Plethico hits 52-week low on ED probe reports

Shares of Plethico Pharmaceuticals fell down by about 20% on Monday after media reports said the Enforcement Directorate is investigating the company. Shares were closed at its 52-week low of Rs 108.95, down by 19.98% on BSE.

The scrip has touched an intra-day high of Rs 151.35. In January, shares were at all time high of Rs 394.  

However, the company has denied the news reports.

"The news item that was flashed on a leading financial news channel regarding the enquiry on the Company, Plethico Pharmaceuticals Ltd has now clarified that there is no basis to the rumor and the Company denies all alleged contents," stated the company release.

Traders are worried as majority of the stake held by promoters - Shashikant Patel and family was pledged with financial institutions. According to data from BSE, by June 2013, about 86.86% of stake held by promoters (hold 77.7% in company) was pledged. At present Plethico has a market cap of Rs 371 crore.