KRBL shares close 10% lower today, fall to three-year low; here's why
KRBL shares crash: This was the largest single-session fall in more than three years. Over the past month, KRBL shares have declined 7%.
- Sep 15, 2025,
- Updated Sep 15, 2025 5:16 PM IST
Shares of KRBL Ltd, a leading Indian rice exporter, tumbled as much as 13% on Monday after Independent Director Anil Kumar Chaudhary resigned, citing significant corporate governance concerns. The stock touched an intra day low of ₹387.05 before closing 10% lower at Rs 401.50 on BSE. This was the largest single-session fall in more than three years. Over the past month, KRBL shares have declined 7%; however, they have outperformed on a yearly basis, gaining over 45% so far in 2025.
In his resignation letter, Chaudhary highlighted several governance issues, asserting that the board’s current dynamics do not align with the principles of effective governance and independent oversight. In his letter addressed to the board, Chaudhary said, "After careful thought and consideration, I have concluded that I am no longer able to meaningfully contribute to the Board's functioning in the manner envisioned under the regulatory framework for independent directors. I believe that effective governance and truly independent oversight are essential ingredients for safeguarding stakeholder interests and I find the prevailing dynamics of the Board to be inconsistent with these principles."
He cited inconsistencies in the recording of board meeting minutes, withholding of information affecting informed decision-making, unjust write-off of export receivables, concerns about the use of CSR funds, and the arbitrary distribution of variable pay and annual increments. Chaudhary also raised objections to significant changes to the Object Clause undertaken without comprehensive discussion and noted undue interference by invitees in the proceedings of board and committee meetings.
"In such an operating environment where dissent is suppressed or sidelined, remaining on the Board would compromise both my professional ethics and obligations as defined under Indian corporate governance codes,"
KRBL had previously informed exchanges of Chaudhary’s exit on 9 September, but the detailed contents of his letter were only made public on Sunday. The resignation marks a notable event for KRBL, given the severity of the governance lapses cited and the resulting sharp decline in its share price on the day.
Separate meetings of the board and independent directors were held today.
Later, the firm told exchanges, "The Board and Independent Directors have concurred to taking the following actions:
1. An Independent reputed third-party firm be appointed to conduct a thorough review of the Observations as soon as possible but not later than 30 days and present the report to the respective Board Committees.
2. The respective Board Committees should deliberate on the report relating to their area of Observations and submit recommendations to the Board."
Referring to the meetings, the firm said "It was noted that the company has in place systems and processes commensurate with the size of the Company’s operations to ensure that any kind of financial impact or non-compliances are highlighted to the Board and respective Committees, with full disclosures to the Stock Exchanges in compliance with applicable laws, as and when required."
Shares of KRBL Ltd, a leading Indian rice exporter, tumbled as much as 13% on Monday after Independent Director Anil Kumar Chaudhary resigned, citing significant corporate governance concerns. The stock touched an intra day low of ₹387.05 before closing 10% lower at Rs 401.50 on BSE. This was the largest single-session fall in more than three years. Over the past month, KRBL shares have declined 7%; however, they have outperformed on a yearly basis, gaining over 45% so far in 2025.
In his resignation letter, Chaudhary highlighted several governance issues, asserting that the board’s current dynamics do not align with the principles of effective governance and independent oversight. In his letter addressed to the board, Chaudhary said, "After careful thought and consideration, I have concluded that I am no longer able to meaningfully contribute to the Board's functioning in the manner envisioned under the regulatory framework for independent directors. I believe that effective governance and truly independent oversight are essential ingredients for safeguarding stakeholder interests and I find the prevailing dynamics of the Board to be inconsistent with these principles."
He cited inconsistencies in the recording of board meeting minutes, withholding of information affecting informed decision-making, unjust write-off of export receivables, concerns about the use of CSR funds, and the arbitrary distribution of variable pay and annual increments. Chaudhary also raised objections to significant changes to the Object Clause undertaken without comprehensive discussion and noted undue interference by invitees in the proceedings of board and committee meetings.
"In such an operating environment where dissent is suppressed or sidelined, remaining on the Board would compromise both my professional ethics and obligations as defined under Indian corporate governance codes,"
KRBL had previously informed exchanges of Chaudhary’s exit on 9 September, but the detailed contents of his letter were only made public on Sunday. The resignation marks a notable event for KRBL, given the severity of the governance lapses cited and the resulting sharp decline in its share price on the day.
Separate meetings of the board and independent directors were held today.
Later, the firm told exchanges, "The Board and Independent Directors have concurred to taking the following actions:
1. An Independent reputed third-party firm be appointed to conduct a thorough review of the Observations as soon as possible but not later than 30 days and present the report to the respective Board Committees.
2. The respective Board Committees should deliberate on the report relating to their area of Observations and submit recommendations to the Board."
Referring to the meetings, the firm said "It was noted that the company has in place systems and processes commensurate with the size of the Company’s operations to ensure that any kind of financial impact or non-compliances are highlighted to the Board and respective Committees, with full disclosures to the Stock Exchanges in compliance with applicable laws, as and when required."