Arshiya International hits 52-week low on alleged financial irregularities

NEW DELHI: Shares of Mumbai-based Arshiya International were locked at 20 per cent lower circuit in trade today as sentiment turned bearish following allegations financial irregularities by ex-employees who were sacked on Saturday.

According to a news report in a business daily, the company has sacked several top-level employees on shrinking order-book concerns due to slowdown in the infrastructure sector.

"The promoters have misguided investors, stakeholders by painting a rosy picture so far, while the company is hollow – it is a mini Satyam," said one of the sacked employees.

The employees have also alleged that the company hasn’t been paying salaries to staff since September.

The report quoted one of the sacked employees saying that as many as 290 people were asked to leave without notice and dues.

Meanwhile, the management has called the allegations as baseless rumours. The company is likely to send out press statement shortly.

According to analysts, the sharp fall in the counter may trigger a deeper correction in the coming days as financers may be forced to sell-off pledged shares due to margins pressure.

The promoters held 44.5 per cent stake in the company till September 2012, as per the BSE website. The have pledged additional 12.7 per cent stake on January 2, 2013, say reports.

However, around 75 per cent of promoters holding is pledged and may get sold at lower levels.

At 11:45 a.m., the stock was 97.40, down 20 per cent, on the BSE. Over 16.67 lakh shares were traded in the counter against 2-week average of 29,000 shares.