The Manpasand Beverages stock crash has left several mutual funds poorer by more than Rs 165 crore during the last two sessions.
The stock of fruit juice manufacturer is down nearly 50% since Friday's closing of Rs 430.20 on BSE after the resignation of its auditing firm Deloitte with effect from May 26, 2018. Today, the stock price is down 9.99% stuck at the lower circuit limit of 10% after exchanges revised the lower circuit limit of 20%. The stock price fell 20% each on Monday and Tuesday on the news of resignation of auditor.
Seven mutual funds held 1.283 crore shares of Manpasand Beverages to the tune of Rs 535.23 crore at the end of April 2018.
BNP Paribas Mutual Fund, BOI AXA Mutual fund, Baroda Pioneer Mid-cap Fund - Growth, ICICI Prudential Mutual Fund, Kotak Mahindra Mutual fund, Motilal Oswal Mutual Fund and SBI Mutual Fund are the MFs which hold stakes in Manpasand Beverages.Motilal Oswal which held shares worth Rs 256.61 crore in April 2018 was the biggest loser among the mutual funds after the share price crashed after nearly 50% since Monday.
SBI Mutual fund which held shares worth Rs 202.92 crore is the second biggest loser after the stock price crash.
On Sunday, May 27, the company informed the exchanges that its statutory auditor Deloitte Haskins & Sells resigned ahead of a board meeting scheduled on May 30 for consideration of financial results. Due to sudden resignation of existing auditors, the business to be transacted at board meeting scheduled on May 30 has been cancelled, it added.
In a letter addressed to company's board, Manpasand Beverages Managing Director Dhirendra Singh, Deloitte Haskins & Sells said that significant information" requested by us from the company at various points of time for the purposes of audit of the financial results have not yet been provided to us".
"We observe that there has been no further progress with respect to the pending information, evidences and explanations. Therefore, as informed to you, we would be unable to complete the statutory audit of the financial statements of the company for the year ended March 31, 2018 by May 30, 2018," it added.
"Under the circumstances, and as per our discussions with you, we are submitting our resignation as statutory auditors of the company with immediate effect," the letter said. According to a report in The Economic Times, Deloitte's sudden move was the result of not sharing of key crucial data related to capital expenditure and revenue which had been sought for at least a month. Deloitte has informed the ministry of corporate affairs about the resignation and the reasons for the same.
In third quarter of last fiscal, the firm logged 65.7% rise in net profit to Rs 12 crore.The firm reported 39.7% yoy growth in revenue to Rs 143.1crore higher than estimates. Manpasand Beverages is engaged in the business of manufacturing of fruit juices in the beverages segment. The company is engaged in the business of manufacturing of fruit drink products with a primary focus on mango fruit. The company offers mango-based fruit drink under the Mango Sip brand. It also offers its products in other brands, including Fruits Up, Manpasand Oral Rehydrating Salts, Pure Sip and Coco Sip.