Shares of Manpasand Beverages extended their losses for the second consecutive day, tumbling 36 per cent in two trading sessions after some of its officials were taken under judicial custody following search by the GST department.
On the BSE, shares of the company plunged 20 per cent to lock in at its lower circuit limit of Rs 70.40.
At the National Stock Exchange (NSE), the scrip tumbled 19.98 per cent to touch the lower circuit of Rs 70.50.
On Monday, the scrip dived 20 per cent to close at Rs 88 on the BSE.
In a BSE filing on Saturday, Manpasand Beverages had said that the Commissioner of Central GST and Customs carried out search and seizure proceedings at various premises of the company on May 23 and further inquiry was conducted on May 24 at GST Bhavan office of Vadodara.
"Mr Abhishek Singh, Whole Time Director, Mr Paresh Thakkar, Chief Financial Officer of the company and Mr Harshvardhan Singh are under judicial custody of Authority on May 24, 2019. The company is contesting these allegations in accordance with the due process of law," it had said in the filing.
In a separate filing on Saturday, it had said, "We would like to inform you that Mr Vishal Sood, Non-Executive Director of the company has tendered resignation from the post of Director with immediate effect i.e. 24th May, 2019. This resignation is mainly due to search from GST department."
Meanwhile, the company's independent directors Bharat Vyas and Milind Babar, along with director Dhruv Agrawal and non-executive director Vishal Sood have tendered their resignation.
The company told BSE that Vyas resigned due to "pre-occupation", while resignation of others is "mainly due to GST search."
On Monday, the company also informed the bourses about cancellation of its board meeting, which was scheduled to be held on May 28, "due to unavoidable circumstances and also due to want of quorum during the board meeting.