SKNL stock bounce back after declining for three days

MUMBAI: Shares of textiles and apparel maker S Kumars Nationwide (SKNL) recovered by nearly 5 per cent in morning trade on the bourses today after the company described rumours surrounding its pledged shares as "baseless".

Following the clarification, shares of the company surged by 4.78 per cent to touch an early high of Rs 53.70 on the BSE. In the previous session, the stock fell sharply by over 11 per cent, its third consecutive fall in a row.

On the NSE, the scrip touched a high of Rs 53.65, up 4.78 per cent from the previous close.

The company said its promoters have pledged shares to nationalised banks that are the lenders of the company only as additional collateral.

It further clarified that its promoters don't see any risk whatsoever of the above shares being sold in the open market by the lending institutions of the company.

The textiles firm also confirmed that neither the promoters nor entities related to the promoters have sold any shares and described the rumours regarding the pledged shares as "baseless".