Indokem hits 5% lower circuit as MPCB orders closure of Ambernath unit

Don't want to miss the best from Business Standard?

Indokem shares touched a 5 per cent lower circuit on BSE in morning deals at ₹829.15 per share. However, at 10:13 AM, Indokem's share price recovered slightly and was down 2.49 per cent at ₹851 per share. In comparison, the BSE Sensex was down 0.35 per cent at 84,656.43.

 

The market capitalisation of the company stood at ₹2,342.61 crore. The 52-week high was at ₹930per share, and the 52-week low was at ₹72.5.    CATCH STOCK MARKET LIVE UPDATES TODAY

Why were Indokem shares falling in trade? 

The selling pressure on the counter came after the Maharashtra Pollution Control Board (MPCB) directed the company to close its manufacturing unit situated in Ambernath, Thane, within 72 hours on alleged violations of the Water (Prevention and Control of Pollution) Act, 1974, the Air (Prevention and Control of Pollution) Act, 1981, and the rules framed thereunder.

 

“We hereby inform you that the company has received a notice (Ref. No. MPCB/CD/2511140007) from the Regional Officer, Maharashtra Pollution Control Board (MPCB), Kalyan, Dist. Thane, directing the closure of the Company’s manufacturing unit situated at Plot No. 128, Chikhloli MIDC, Ambernath, Taluka Ambernath, Dist. Thane, within 72 hours from receipt of the said notice, for alleged violations of the Water (Prevention and Control of Pollution) Act, 1974, the Air (Prevention and Control of Pollution) Act, 1981, and the rules framed thereunder,” the filing read.

 

The company informed that it is in the process of submitting an appropriate representation to MPCB for withdrawal of the said closure direction. Indokem has reiterated that its operations have always been conducted in compliance with all applicable environmental and other statutory laws, and the company shall continue to adhere to such requirements.

 

Indokem is a chemicals, dyes, and textile auxiliaries manufacturing company. Over the years, Indokem Pvt. Ltd. was set up as a member of the Khatau group in 1946. It is among the first in India to enter into the production of dyes. It has since been a leader in the market of supplying textile dyes and chemicals in India. Our resourceful manufacturing capabilities, high-quality production, and cost-effective price contributes to our extensive product portfolio.