Deep Industries slumps on getting show cause notice from ONGC

Deep Industries fell 12.57% to Rs 266.65 at 14:17 IST on BSE after the company said it received a show-cause notice from ONGC pertaining to certain allegations in respect of ongoing contracts.

The announcement was made during trading hours today, 8 June 2017.

Meanwhile, the S&P BSE Sensex was down 8.39 points, or 0.03% to 31,262.89.

On the BSE, 1.73 lakh shares were traded in the counter so far, compared with average daily volumes of 1.81 lakh shares in the past one quarter. The stock had hit a high of Rs 306 and a low of Rs 256 so far during the day. The stock hit a record high of Rs 343.70 on 30 March 2017. The stock hit a 52-week low of Rs 162.05 on 24 June 2016.

The stock had underperformed the market over the past one month till 7 June 2017, falling 5% compared with 4.47% rise in the Sensex. The scrip had also underperformed the market in past one quarter, rising 0.13% as against Sensex's 8.10% rise. The scrip had, however, outperformed the market in past one year, rising 64.55% as against Sensex's 15.73% rise.

The small-cap company has equity capital of Rs 32 crore. Face value per share is Rs 10.

Deep Industries said it has received the show cause notice from ONGC pertaining to certain allegations made in respect of ongoing contracts. The company has sought various documents from ONGC based on which allegations are made. ONGC's response is still awaited on the same.

Deep Industries clarified that it is pioneer company in Indian oil & gas services business for last three decades and maintains highest level of integrity in its business conduct while serving clients across varied services both in public and private space.

The company said it believes that the allegations made in show cause notice are baseless. It is in process of replying to show cause notice and contesting all the allegations made therein.

Net profit of Deep Industries rose 81.20% to Rs 23.23 crore on 36.48% rise in net sales to Rs 74.90 crore in Q4 March 2017 over Q4 March 2016.

Deep Industries is engaged in business of oil and gas services, exploration and production.

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