Temptation Foods, Kohinoor Foods hits lower circuit

MUMBAI: Shares of Temptation Foods and Kohinoor Foods extended losses to hit the lower circuit for the second straight day after the market regulator SEBI pulled up Temptation Foods for falsifying shareholding information in the latter.

According to the SEBI order, Temptation Foods misled investors by providing false declaration to the stock exchanges that it holds over 31.80 lakh shares representing 11.98 per cent stake in Kohinoor Foods. Besides, Venture Business Advisors (as persons acting in concert) holds 4.54 lakh shares or 171 per cent in Kohinoor Foods.

However, Kohinoor Foods, on December 23, 2008, denied the holding disclosure given by Temptation Foods saying that as per their Register of Members, Temptation Foods held only 7,00,648 shares representing 2.59 per cent in the company.

"The deliberate publication and dissemination of grossly exaggerated holdings in KFL by it (Temptation) indicates an attempt to mislead the investors and create artificial market to induce the investors," the SEBI order said.

At 11:40 am, the Kohinoor Foods stock was down 20 per cent at Rs 54.45 and that of Temptation Foods was trading at Rs 60.35, down 10 per cent.