Manpasand Beverages plunges 20% on governance issues

NEW DELHI: Shares of Manpasand Beverages plunged 20 per cent in Tuesday’s trade amid growing concerns over corporate governance.

On Monday, a couple of independent directors at the Vadodara-based company resigned. The fruit juice maker also cancelled its scheduled board meet on Tuesday, where it was looking to consider and approve March quarter results.

The meet is now cancelled due to unavoidable circumstances and also due to want of quorum during the board meeting, Manpasand Beverages told stock exchanges on Monday.


This is after the Commissioner of Central GST and Customs carried out search and seizure proceedings at various premises of the company last week. The company’s managing director Abhishek Singh, his brother Harshvardhan Singh and chief financial officer Paresh Thakkar were arrested.

On Tuesday, the scrip hit a lower circuit limit of 20 per cent and closed at Rs 70.40 on BSE. This was the second consecutive day of stock hitting the lower circuit limit.

Also Read: Analysts advise exit from Manpasand Beverages

Earlier, the stock was under scrutiny after Delotte Haskins and Sells LLP resigned as its auditor in May 2018, days before its earnings announcement, saying that significant information was not shared by the company.

“It is a negative development as top three business heads are now behind bars. The company has been seen as low on governance. The stock is likely to remain under pressure,” Abneesh Roy, senior vice-president-institutional equities at Edelweiss Securities told ET.

“Retail investors should exit at whatever price they get as the suspicion is now confirmed. It does not make sense in holding such a stock,” independent market expert Ambareesh Baliga told ET.