Shares of Manpasand Beverages witnessed heavy selling pressure in the last three trading sessions, correcting by 50 per cent, after the fruit juice maker came under scrutiny over corporate governance, which led to arrest of its top executives. Investors have been pressing the sell button on Manpasand Beverages after the Commissioner of Central GST (CGST) and Customs on Friday arrested the company's managing director (MD) Abhishek Singh and Chief Financial Officer (CFO) Paresh Thakkar on the allegation of creating fake company units and committing tax evasion of Rs 40 crore.
Extending its losses for the third straight session, Manpasand Beverages share price locked at the 10 per cent lower circuit at Rs 63.40 on the Bombay Stock Exchange on Wednesday. The stock had tumbled 20 per cent to Rs 70.40 per share on Tuesday.
On the National Stock Exchange, Manpasand shares were locked at 10 per cent lower circuit at Rs 63.45 apiece against previous close level of Rs 70.50.
According to market experts, investors holding the stocks of Manpasand Beverages should cut their losses short and exit the scrip.
The CGST had carried out search and unearthed a huge racket of creating fake units for availing fraudulent credit and committing tax evasion of Rs 40 crore and involving turnover of Rs 300 crore. The authorities have found a network of more than 30 fake units located in various parts of the country, which were used for committing fraud by availing illegal credit, as per statement released by CGST.
The company has also cancelled the board meeting, which was scheduled to be held on May 28, 2019, to consider and approve audited financial results.
Meanwhile, the BSE Sensex was trading at 39624.90, down by 124.83 points or by 0.31 per cent, and the NSE Nifty was trading lower at 11889.15, down by 39.60 points or by 0.33 per cent.
Edited by Chitranjan Kumar