Britannia shares climb 2% after 10 sessions of losses

NEW DELHI: After suffering losses in the last ten successive sessions, shares of Britannia Industries climbed 2 per cent in morning trade on Tuesday.

In the last ten sessions, the stock had retreated 12 per cent.

The scrip climbed despite negative news related to its promoter and director Ness Wadia.


As per a PTI report, proxy advisory and corporate governance firm InGovern on Monday alleged that Britannia Industries violated listing regulations by not reporting the sentencing of its promoter and director Ness Wadia to two years of imprisonment by a Japanese court in March for possession of drugs, and demanded his resignation.

InGovern founder Shriram Subramanian also said the directors on the board of Britannia Industries should ask themselves whether the continuation of Wadia on board is good for corporate governance.

Citing Sebi's listing obligations and disclosure requirements (LODR), he said a company has to report any fraud, default by promoter or arrest of key managerial persons or promoters as it is a material event.

Britannia had reported an 11.82 per cent increase in consolidated net profit at Rs 294.27 crore for the fourth quarter of the financial year 2019 against a net profit of Rs 263.16 crore in the corresponding quarter of the previous fiscal.

The results failed to excite the market and several brokerages, including CLSA and Credit Suisse cut the target price of the stock.

Shares of Britannia Industries closed 0.46 per cent lower at Rs 2,652.60 on BSE.