S Kumars shares lose 5 per cent, hit 52-week low intra-day on fraud investigation

S Kumars Nationwide, the textile major, saw its shares drop 9 per cent on Tuesday in view of complaints to the Serious Fraud Investigation Office (SFIO) about alleged violation of corporate governance and other norms by the company.

The matter is being examined by the Registrar of Companies, Ministry of Corporate Affairs had said on Monday.

After opening weak, shares of the company lost 8.8 per cent to touch one-year low of Rs 17.6 on the Bombay Stock Exchange (BSE). At close, the scrip trimmed some of the initial losses and ended at Rs 18.30, down 5.18 per cent.

On the National Stock Exchange, the stock closed 5.43 per cent lower at Rs 18.30.

In terms of volume, 31.22 lakh shares of the company were traded on BSE, while over one crore shares changed hands on NSE.

In contrast, in the broader market the Sensex ended higher by 56.47 points 17,440.87.

The company said in a statement to the stock exchanges: "It had received a letter from RoC, Mumbai, asking for comments and clarifications on certain issues raised by an individual. The matters raised by the individual are frivolous and baseless. The company has already replied in detail to the RoC, Mumbai.

"SKNL follows best practices in corporate governance and believes that its clarifications and stance will more than adequately address any issues raised and forwarded to the company. There is no other review being conducted by any government or regulatory authority with regard to this matter."

With inputs from PTI