Shares of Manpasand Beverages tank for second consecutive day after company officials' arrest over GST evasion

New Delhi: Shares of Manpasand Beverages Tuesday hit the lower circuit limit for the second day in a row as some of the officials of the company have been taken under judicial custody following search and seizure proceedings carried out at various premises of the company by GST officials. On the BSE, shares of the company plunged 20 percent to lock in at its lower circuit limit of Rs 70.40. At the National Stock Exchange (NSE), the scrip tumbled 19.98 percent to touch the lower circuit of Rs 70.50.

On Monday, the scrip dived 20 percent to close at Rs 88 on the BSE. “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 yesterday, i.e., 24 May, 2019. The company is contesting these allegations in accordance with the due process of law,” it had said in a regulatory filing on Saturday. 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 the resignation of others is “mainly due to GST search.” On Monday, the company also informed the bourses about the cancellation of the 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.”