KRBL tanks 13% as independent director resigns citing governance concerns

KRBL shares tanked 12.8 per cent and logged an intra-day low at ₹387.05 per share on BSE, after Anil Kumar Chaudhary, resigned from his post, citing corporate governance issues

KRBL shares tanked 12.8 per cent on Monday and logged an intra-day low at ₹387.05 per share on BSE. At 9:30 AM, KRBL’s share price was trading 8.41 per cent lower at ₹406.75 on BSE. In comparison, the BSE Sensex was up 0.04 per cent at 81,940.42.

 

The market capitalisation of the company stood at ₹9,310.10 crore. The 52-week high of the stock was at ₹495per share, and the 52-week low was at ₹225.7. KRBL specialises in the manufacturing and marketing process of rice products.

Why were KRBL shares falling?

The stock was under selling pressure after the company’s independent director, Anil Kumar Chaudhary, resigned from his post, citing corporate governance issues, according to the exchange filing. 

 

“We hereby inform you that Anil Kumar Chaudhary, Non-Executive Independent Director of the company has tendered his resignation from the Board of Directors w.e.f September 8, 2025. Consequent to his resignation from the Board, he shall also cease to be the Chairperson/Member of the respective Committees of Board of Directors of the Company w.e.f September 08, 2025,” the filing read. 

 

In his resignation, Chaudhary said, “I believe that effective governance and truly independent oversight are essential ingredients for safeguarding stakeholder interests, and I find the prevailing dynamics of the Board to be inconsistent with these principles,” Anil Kumar Chaudhary wrote in his resignation letter. 

 

The letter listed issues regarding: 

• Inconsistencies in the recording of Minutes of the Board and Committee Meetings.
• Instances of information being withheld are impacting informed decision-making.
• Unjust write-off of certain export receivables without adequate deliberation.
• Concerns regarding the use of CSR funds.
• Arbitrary distribution of Variable Pay and Annual Increments to Persons Holding Office or Place of Profit.
• Significant changes to the Object Clause were undertaken without comprehensive discussion.
• Undue interference by the invitees in the proceedings of the Board and Committee Meetings.

Chaudhart added: I have raised these matters whenever appropriate, hoping for resolution in the interest of the company and its stakeholders. In such an operating environment where dissent is suppressed or sidelined, remaining on the board would compromise both my professional ethics and obligations as defined under Indian corporate governance codes.