Sumeet Industries tumbled 8.88% to Rs 15.90 at 10:27 IST on BSE after the market regulator barred the company and 14 other entities from capital market for up to three years.
Meanwhile, the BSE Sensex was up 114.93 points, or 0.47%, to 24,412.95.
On BSE, so far 65,000 shares were traded in the counter, compared with an average volume of 56,038 shares in the past one quarter.
The stock hit a high of Rs 17.90 and a low of Rs 15.70 so far during the day. The stock hit a 52-week high of Rs 32.90 on 3 November 2013. The stock hit a 52-week low of Rs 13.75 on 23 April 2014.
The stock had outperformed the market over the past one month till 21 May 2014, rising 16.72% compared with 6.73% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 13.83% as against Sensex's 17.38% rise.
The small-cap company has an equity capital of Rs 58.04 crore. Face value per share is Rs 10.
The Securities and Exchange Board of India (Sebi) on Wednesday, 21 May 2014, barred Sumeet Industries and 14 other entities, including company's chairman, promoters and directors, from capital market for up to three years and also directed them to disgorge wrongful gains made by them through stock manipulation in 2007.
While Sumeet Industries has been restrained from dealing in the securities market for two years, its chairman Shankar Somani, managing director Rajkumar Somani have been barred for a period of three years. Sebi has prohibited company's three directors, five promoters and four other individuals from the capital market.
Sebi has directed Purshottam Khandelwal and promoter group entities to disgorge the wrongful gain made by them from their contraventions within 45 days from the date of this order by way of demand draft drawn in favour of Sebi, with simple interest of 12% per annum from 12 March 2007 till the date of payment. This order shall come into force with immediate effect, Sebi said.
Sebi stated that if payment is not made within the specified time, then, Sebi will initiate recovery process whereby the respective entities shall be restrained for a further period of five years from buying, selling or dealing in securities market in any manner whatsoever, accessing the securities market, directly or indirectly, or associating with any securities market intermediary or listed company in any manner or capacity.
On a consolidated basis, Sumeet Industries' net profit surged 171.2% to Rs 6.13 crore on 16.9% increase in net sales to Rs 385.94 crore in Q3 December 2013 over Q3 December 2012.
Sumeet Industries is a textiles firm. The company makes polyester yarn, polypropylene yarn and woven fabrics.
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