Share price of Morepen Laboratories fell over 17% intraday on Wednesday, after market regulator barred Morepen Laboratories from the capital market for one year for making misleading disclosure about the issuance of global depository receipts (GDRs).
Reacting to the news, the stock opened 12% lower at Rs 19, against the last closing price of Rs 21.75 on BSE. Later, the stock fell 17.24% to the intraday low of Rs 18.
Morepen Lab stock price has moved below its 200-day simple moving average today. It was already trading below 30,50, 150 day SMA earlier. The stock has fallen over 20% in the last 2 days of trade.
Overall 4.63 lakh shares and 30.67 lakh shares are currently changing hands on BSE and BSE, both above 5,10, the 30-day average volume traded.
On Tuesday, market regulator SEBI in its 47-page order said that Morepen made "Global Depository Receipt (GDR) issue with an arrangement that it pledged the GDR proceeds for the loans availed by the subscribers for subscribing to the GDR issue of Notice no 1 (Morepen) and made false and misleading disclosures."
By making such a misleading disclosure, the company has violated PFTUP (Prohibition of Fraudulent and Unfair Trade Practices) norms.
Additionally, the company issued a clarification, saying that the said matter was pertaining to the year 2003 which has been finally settled by the SEBI today.
"There is no impact on the existing securities listed with the Stock Exchanges as well as no financial implications on the business operation of the Company, of the said order," the filing added.
In regards to the ongoing preferential issue of fully convertible warrants (to be converted within 18 months), the filing said," Company is seeking guidance regarding the implication of the SEBI's order and process to be followed to complete the said preferential issue of warrants".
As of 1235 IST, the Morepen Labs stock trades 16.32% lower at Rs 18.20 on BSE.
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