Shree Cement trades lower for fourth straight day; stock down 9% in a week

Shares of Shree Cement were trading lower for the fourth straight day, down 2 per cent at Rs 27,926 on the on the National Stock Exchange (NSE) in intra-day trade on Friday. The stock has slipped 5 per cent in two days alone, amid reports that the company’s listed holding company - NBI Industrial Finance Company - sold shares of several unlisted companies in its books around five years ago to promoter entities for only Rs 89 crore, though their fair value was Rs 3,077 crore, InGovern has alleged. CLICK HERE FOR FULL REPORT

In the past one-week, Shree Cement has slipped 9 per cent, as compared to 1.5 per cent decline in the Nifty50 index. With Friday's fall, the stock has now corrected 13 per cent from its all-time high level of Rs 32,048 touched on April 8.

Meanwhile, the stock of NBI Industrial Finance Company was quoting 0.3 per cent down at Rs 1,850, after hitting a low of Rs 1,800 and a high of Rs 1,876 on the NSE in intra-day trade on Friday. It hit a 52-week high of Rs 2,040 on Thursday, April 22.

"Proxy advisory firm InGovern Research Services has said NBI Industrial Finance, a listed entity controlled by BG Bangur and family, has sold shares of some unlisted companies worth more than Rs 3,000 crore to another privately-owned promoter group firm for Rs 89 crore in FY17 without shareholder's arpproval. As this is a matter of corporate governance, we expect negative reaction in the stock price till we get more clarity on this subject from the company," ICICI Securities said in a note.

BSE has sought clarification from Shree Cement with respect to news article appearing in Economic Times website dated April 22, 2021, titled "Bangur Co sold its unlisted co's shares at steep discount". The reply is awaited. READ THE BSE RELEASE HERE