Investors continue to desert Manpasand Beverages; shares plunge over 42% in three days

New Delhi: Shares of Manpasand Beverages continued to fall on Wednesday, plunging over 42 percent in three days, after some of the company’s officials were taken under judicial custody following a search by the Commissioner of Central GST and Customs. The scrip tumbled 9.94 percent to close at Rs 63.40, its lower circuit limit, on the BSE on Wednesday. At the NSE, shares plummeted 10 percent to close at Rs 63.45, its lower circuit. In three days, the scrip has fallen by 42.36 percent on the BSE. The BSE Tuesday revised the circuit limit for shares of the company to curb excessive volatility in its prices. [caption id=“attachment_4424183” align=“alignleft” width=“380”] Representational image. Reuters[/caption] The new circuit limit for Manpasand Beverages is 10 per cent and would be effective from May 29, the exchange had said. 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 23 May and further inquiry was conducted on 24 May 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 24 May, 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 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.” The company’s independent directors Bharat Vyas and Milind Babar, along with director Dhruv Agrawal also tendered their resignation. The company informed the 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 28 May, “due to unavoidable circumstances and also due to want of quorum during the board meeting.”