Supriya Lifescience shares tumble 10% in early trade; here's why

Shares of Supriya Lifescience Ltd tumbled in early trade on Monday after the company disclosed that judicial proceedings had been initiated against one of its senior officials.

The stock declined 10.03 per cent to touch a low of Rs 881.35.

In a BSE filing dated July 4, the company said, "Pursuant to the applicable provisions of the Sebi (Listing Obligations and Disclosure Requirements) Regulations, 2015, and other applicable laws, and in accordance with the Regulation 30 read with Para B of Part A of Schedule III of the Listing Regulations and Sebi circular dated July 13, 2023 Sebi Listing Regulations, this is to inform you that the investigation has been initiated yesterday against Mr. Sreekant Sreedharan, General Manager, Sales & Marketing officer of the Company by Special Investigation and Intelligence branch of Customs Department, subsequent to which judicial custody has been granted by CMM court till July 17, 2026."

Supriya Lifescience added, "The Company remains committed to maintaining the highest standards of corporate governance and regulatory compliance. The Company is closely monitoring the developments in the case and any further material developments in the matter shall be disclosed to the stock exchanges in accordance with applicable laws and regulations."

The company said the proceedings were initiated against the personnel on Sunday under the Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985, over what it described as a procedural lapse involving a single export transaction of an identified product. It added that the officer is under judicial detention.

Supriya Lifescience also stated that, based on the information currently available, the proceedings are not expected to have any material impact on the company's operations, financial position or governance.

The company said it is evaluating the implications of the proceedings and obtaining appropriate legal advice.

"The matter is before the competent court, and the Company will take an appropriate action after examining all applicable legal provisions and implications," the company further said.