Welspun India sinks 20% after Target severs business ties
Target on Friday said it discovered last month that some 750,000 sheets and pillow cases from Welspun had been mislabeled as Egyptian cotton.
By ET Online | Updated:
NEW DELHI: Shares of Welspun India tanked 20 per cent in morning trade on Monday after retail company Target Corporation severed business ties with the textile manufacturer, saying the latter supplied it cheaper cotton in the name of Egyptian cotton.
Target on Friday said it discovered last month that some 750,000 sheets and pillow cases from Welspun had been mislabeled as Egyptian cotton. Target pulled the items, sold under the Fieldcrest label, from its stores and has offered customers refund on the products, which were made between August 2014 and July 2016, Bloomberg reported.
Reacting to the development, Welspun India said it would appoint an external auditor to investigate the claim slapped by Target Corporation. Shares of the company were trading at Rs 82.30 apiece, down 19.98 per cent from previous close on the Bombay Stock Exchange (BSE). The stock was also top loser in the S&P BSE SmallCap pack.
Target on Friday said it discovered last month that some 750,000 sheets and pillow cases from Welspun had been mislabeled as Egyptian cotton. Target pulled the items, sold under the Fieldcrest label, from its stores and has offered customers refund on the products, which were made between August 2014 and July 2016, Bloomberg reported.
Reacting to the development, Welspun India said it would appoint an external auditor to investigate the claim slapped by Target Corporation. Shares of the company were trading at Rs 82.30 apiece, down 19.98 per cent from previous close on the Bombay Stock Exchange (BSE). The stock was also top loser in the S&P BSE SmallCap pack.
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