The stock of S Kumars Nationwide fell 20 per cent over the last two days and closed at Rs 51.25 on Tuesday. The scrip saw a seven-fold jump in trading volumes on Tuesday. The company, in a statement, said that its shares witnessed immense volatility owing to baseless rumours regarding pledged shares.
As on March 31, the promoters have pledged 83 per cent of their shares. The company says that the stake of the promoters have been pledged to nationalised banks who are the lenders of the company, only as additional collateral, and not as primary collateral.
The security thus created is an additional collateral security in addition to the primary charge created on the fixed assets and current assets of the company. This, the company says, is more than sufficient to cover its borrowings.