Clarification on stock rigging fails to lift KS Oils

Shares of KS Oils plunged further around 13% on Thursday, a day after ET NOW reported that the Intelligence Bureau suspects price rigging in the stock.

India's internal intelligence agency has accused stock market operator Vimal Rathod of cornering these shares for non-resident Indian businessman C Sivasankaran, reputed to buy companies cheap and sell them at higher valuations, according to ET Now.

"I would like to clarify that KS Oils has nothing to do with the name of Mr. Vimal Rathod that has come in the report and KS Oils management never met him. We are unaware of all these things and we understand from the mandatory disclosure made by Mr. Sivasankaran a few months back to us that companies belonging to him had purchased a certain block of our company shares in a secondary market transaction from Citi Venture Capital, a private equity investor in our company. The company is unaware of any other dealing," said Sanjay Agarwal, MD & CEO, KS Oils.

On the holdings of Mr Sivasankaran in the company, Sanjay Agarwal said that Sivasankaran had bought about 5% stake from Citi Venture Capital through a block deal and it was well reported and the company was able to know that from the mandatory disclosure only.

Sanjay ruled out any particular reason for a sudden selling pressure coming about in KS Oils and said there were midcap pressure on other shares as well and KS Oils was standing on strong fundamentals.