S Kumars stock falls on SFIO complaint

Intra-day, the scrip lost 8.8% to touch a 52-week low of Rs 17.6

Shares of textile major S Kumars Nationwide fell about five per cent on Tuesday, owing to complaints to the Serious Fraud Investigation Office (SFIO) on alleged violation of norms, including those on corporate governance.

On Tuesday, S Kumars’ shares trimmed initial losses, closing at Rs 18.30, down 5.18 per cent on the Bombay Stock Exchange (BSE). Intra-day, the scrip lost 8.8 per cent to touch a 52-week low of Rs 17.6. On the National Stock Exchange (NSE), the stock closed 5.43 per cent lower at Rs 18.30. The Sensex closed at 17,440.87, higher by 56.47 points.

Yesterday, the ministry of corporate affairs stated the complaints to the SFIO were being considered by the Registrar of Companies (RoC), which was examining the company’s reply. Any action in the matter would be taken after the company gave its report, minister of state for corporate affairs R P N Singh had said.

Meanwhile, in a statement to the stock exchanges, the company stated it had “received a letter from RoC, Mumbai, asking for comments and clarifications on certain issues raised by an individual. The matters raised by the individual are frivolous and baseless. The company has already replied in detail to the RoC, Mumbai. S Kumars Nationwide follows best practices in corporate governance and believes its clarifications and stance would more-than-adequately address any issue raised and forwarded to the company. There is no other review being conducted by any government or regulatory authority with regard to this matter.”