Stock of dairy firm led by Chandrababu Naidu's daughter-in-law tanks 7%; here's why

Heritage Foods Ltd, the dairy firm led by TDP chief Nara Chandrababu Naidu's daughter-in-law Brahmani Nara, saw its shares fall 7% on Monday. Naidu was on Sunday sent to judicial custody for 14 days in a multi-crore corruption case by a court in Vijayawada.

The Telugu Desam Party chief reached a jail in Rajahmundry in the early hours of Monday.

He reached the jail after a nearly 200-km journey to Rajamahendravaram in East Godavari district from Vijayawada.

On Monday, Heritage Foods' scrip on BSE closed 7% lower at Rs 253 as investors are wary about the company's future prospects with Naidu sent to 14-day judicial custody. The 52-week high of the scrip is Rs 287.35 and 52-week low is Rs 135.15.

Brahmani Nara, who is married to Naidu's son Lokesh, is the Executive Director of Heritage Foods. Naidu's wife Bhuvaneswari is Vice-Chairperson & Managing Director of the dairy firm.

Home-cooked food, medication and a special room were among the amenities granted by the court to Naidu during his judicial custody. The 73-year-old former chief minister has been provided with a separate accommodation inside the jail in view of the purported threat to his life. He is a Z-plus category security protectee.

Naidu's son and TDP general secretary Nara Lokesh trailed his father to the prison gates and waited outside for some time before leaving.

According to the detention order, the judge highlighted that there are grounds to believe the accusations levelled against Naidu, and 24 hours were not enough to complete the investigation. Naidu was arrested in the Skill Development Corporation scam case following a pre-dawn operation on Saturday at Nandyala, which involved officers knocking on the door of the caravan in which he was sleeping. He was arrested by the CID around 6 am on Saturday from a marriage hall outside which his caravan was parked.

With inputs from PTI

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