Dabur India cuts losses in highly volatile trade

Dabur India lost 2.46% to Rs 210.50 at 14:03 IST on BSE in intensely volatile trade after the central government reportedly revealed that a member of promoter family has allegedly parked untaxed or black money in illicit foreign accounts.

Meanwhile, the BSE Sensex was down 28.26 points, or 0.11%, to 26,822.79

The stock fell on high volume. On BSE, so far 14.29 lakh shares were traded in the counter, compared with an average volume of 1.45 lakh shares in the past one quarter.

The stock was intensely volatile. The stock lost as much as 8.98% at the day's low of Rs 196.40 so far during the day. The stock rose as much as 1.48% at the day's high of Rs 219 so far during the day. The stock had scaled a record high of Rs 235.40 on 27 August 2014. The stock hit a 52-week low of Rs 154 on 5 February 2014.

The stock had underperformed the market over the past one month till 23 October 2014, falling 2.26% compared with Sensex's 0.28% rise. The scrip, however, outperformed the market over the past one quarter, gaining 11.27% as against Sensex's 2.69% rise.

The large-cap company has an equity capital of Rs 175.64 crore. Face value per share is Re 1.

As per reports, the central government revealed that Pradip Burman has allegedly parked untaxed or black money in illicit foreign accounts. Pradip Burman is a member of the promoter family of Dabur India but currently does not hold any position in the company.

Pradip Burman held a tiny 0.02% stake in Dabur India (as per shareholding pattern as on 30 September 2014.

However in a clarification, Dabur India spokesperson reportedly indicated that the Burman family was committed to the highest standards of corporate governance, and encourage ethical behaviour at all levels. The account was opened when Pradip Burman was an NRI, and was legally allowed to open the account. The company has followed all the laws and the complete details regarding the account have been voluntarily, and as per law, filed with the Income Tax Department, and appropriate taxes paid, wherever applicable, the spokesperson reportedly said.

Dabur India announces its Q2 September 2014 results on 3 November 2014. On a consolidated basis, Dabur India's net profit rose 13.3% to Rs 210.81 crore on 13% increase in total income to Rs 1904.80 crore in Q1 June 2014 over Q1 June 2013.

Dabur India is one of India's leading FMCG companies. Dabur operates in key consumer product categories like hair care, oral care, health care, skin care, home care and foods.

Powered by Capital Market - Live News