Indokem shares hit lower circuit as pollution board orders closure of Ambarnath unit

Shares of Indokem Limited hit lower circuit of 5% in Tuesday's trading session, following the Maharashtra Pollution Control Board's directive to close its Ambarnath manufacturing unit for alleged environmental violations.

The stock fell 5% to Rs 829.15 from its previous close of Rs 872.75 with its market capitalisation recorded at ₹2,312 crore. Over the past year, the stock has experienced significant volatility, reaching a 52-week high of ₹930 on 13 November 2025 and a 52-week low of ₹72.50. Monthly and six-month returns stand notably elevated at 51.15% and 336.62%, respectively, while the cumulative return since its 1995 listing at ₹18 per share amounts to 4,506.39%.

In a regulatory update, the company stated it is in the process of ascertaining the extent of damage.

The company is in the process of submitting an appropriate representation to MPCB for the withdrawal of the said closure direction. It also reiterates that its operations have always been conducted in compliance with all applicable environmental and other statutory laws, and the company shall continue to adhere to such requirements.

 These developments come at a time of heightened scrutiny for compliance within the industry.

The company’s ongoing efforts to address the situation and its stated intention to engage with authorities could have near-term implications for its operations and financial outcomes. Investors and market participants remain attentive to updates from both Indokem and the Maharashtra Pollution Control Board, as the company continues to clarify the extent of the impact and the potential for operational resumption pending regulatory review.

“The company has received a notice from the Regional Officer, Maharashtra Pollution Control Board (MPCB), Kalyan, Dist. Thane, directing the closure of the Company’s manufacturing unit situated at Plot No. 128, Chikhloli MIDC, Ambernath, Taluka Ambernath, Dist. Thane, within 72 hours from receipt of the said notice, for alleged violations of the Water (Prevention and Control of Pollution) Act, 1974, the Air (Prevention and Control of Pollution) Act, 1981, and the rules framed thereunder,” the company stated in an exchange filing.