Heard on the street: Off-loading of pledged shares caused the pain for Mandhana Industries

MUMBAI: The Salman Khan famed textile company Mandhana Industries is up 50% from its life time lows in just over a week after it crashed by over 80% last month. While these wild swings of the stock has confused many, those in the know are blaming the dismal fate of company’s share price on a Mumbai based non-banking finance company ( NBFC).

Sources say, the NBFC had suffered huge losses when the share price of Ruchi Soya and Bhushan Steel crashed and it could not offload in time. It took no chances this time and off-loaded large chunk of pledged shares in Mandhana. The talks of a tiff between the Bollywood actor and Mandhana promoter over royalty and profit sharing was not liked by the NBFC.

A sources said the NBFC had over 35 lakh shares pledged with it. But it is yet unknown if the NBFC has off-loaded the entire holding.