Punching error in block deal sparks sharp swings in Clean Science shares

Mumbai: A routine block trade on the exchanges involving the promoters of specialty chemical maker Clean Science and Technology turned tense after a blundered execution by one of the brokers.

A 'punching error' during the execution of a stake sale of the company's promoters by one of its brokers Avendus Spark Institutional Equities (SIEPL) on Thursday morning resulted in many more shares being sold, creating some nervous moments for the company's founders and other investors.

In an exchange filing, Clean Science said Spark is taking "immediate remedial steps to review the situation and address the matter responsibly."


"SIEPL (Avendus Spark) has informed the Sellers (Clean's promoters) that on account of an error at SIEPL's end, the sell orders were for a significantly higher number of shares than what SIEPL was authorised and instructed to sell for and on behalf of the Sellers," said Clean Science and Technology in an exchange filing.

Avendus Spark Institutional Equities said the execution error in the Clean Science trade is being 'remediated' in line with exchange regulations.

"There is no impact to the seller owing to this error nor is there any loss on the trade. Our focus has been on resolving the matter promptly and transparently," it said.

Clean's promoters were scheduled to offload a 24% stake in the company in a deal worth over ₹2,626.5 crore on Thursday. The total traded value of the stock on BSE was at ₹7,073.85 crore, and ₹3,440.27 crore on NSE. The company's market capitalisation was at ₹12,205.33 crore on Thursday's close.

The total traded quantity of the stock was at 6.53 crore shares on BSE, against a two-week average quantity of 8,728 shares.