Coromandel International declined 1.38% to Rs 235.80 at 11:40 IST on BSE after the market regulator charged A Vellayan, chairman of the Murugappa Group, and three others with insider trading.
Securities and Exchange Board of India (Sebi) issued order after market hours yesterday, 21 May 2015.
Meanwhile, the S&P BSE Sensex was up 208.56 points or 0.75% at 28,017.91.
On BSE, so far 2,044 shares were traded in the counter as against average daily volume of 79,911 shares in the past one quarter.
The stock hit a high of Rs 238.50 and low of Rs 235 so far during the day. The stock had hit a 52-week high of Rs 340 on 5 November 2014. The stock had hit a 52-week low of Rs 226.40 on 6 May 2015.
The stock had underperformed the market over the past one month till 21 May 2015, declining 6.55% compared with Sensex's 0.48% rise. The scrip had also underperformed the market in past one quarter, dropping 18.76% as against Sensex's 4.86% fall.
The mid-cap firm has equity capital of Rs 29.13 crore. Face value per share is Re 1.
SEBI on receipt of certain complaints alleging therein that the unpublished price sensitive information pertaining to the acquisition of the shares of Sabero Organic Gujarat by Coromandel International was leaked to certain persons, who were acting in concert with the management of Sabero/Coromandel initiated a preliminary examination into the matter. Later, a detailed investigation was conducted by SEBI for the period of 15 May 2011 to 15 June 2011. Mr. A. Vellayan, Mr. A.R. Murugappan, Mr. Gopalakrishnan C. and V. Karuppiah (HUF) were impounded with unlawful gains by trading in shares based on price sensitive information. The regulator alleged Vellayan had passed price-sensitive information pertaining to the acquisition of Sabero Organic Gujarat by Coromandel International, a Murugappa Group entity. Mr. V. Karuppiah is the son-in-law of Mr. A.R. Murugappan.
It directed V Karuppiah, A R Murugappan and other entities to surrender unlawful gains made by trading in Sabero shares. SEBI has directed to impound the unlawful gains of Rs 1.92 crore made by Mr. Gopalakrishnan. C.and Rs 23.43 lakh made by V. Karuppiah with immediate effect. If the funds are found to be insufficient to meet the figure of unlawful gains, as directed above, then the securities lying in the demat account of these persons shall be frozen to the extent of the remaining value.
Sabero was incorporated in November 1991 and was in the business of manufacturing chemical intermediates for pesticides and flame retardant.
Coromandel International's consolidated net profit fell 15.1% to Rs 68.66 crore on 36.7% rise in total income to Rs 3010.93 crore in Q4 March 2015 over Q4 March 2014.
Coromandel International is a Phosphatic fertilizer player, is in the business segments of Fertilizers, Specialty Nutrients, Crop Protection and Retail. The company manufactures a wide range of fertilizers and markets around 3.2 million tons.
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