Kemorck Industries and Exports continues to witnesss selling pressure and was locked in 5% lower circuit at Rs 73.65.
The stock of plastic products maker currently trading at its lowest level since December 13, 2005 has tanked 77% from Rs 316 since August 8 on the Bombay Stock Exchange (BSE). A combined 30,648 shares have changed hands so far and there are pending sell orders for 477,417 shares on the BSE and NSE.
The Vadodara-based company was continuously under pressure after its promoter had pledged majority stake to various lenders as part of collateral against company’s borrowings and poor earnings.
Kalpesh Mahendrabhai Patel, the company’s promoter pledged 3.62 million shares representing 71% of his holdings in favor of Sicom, Karvy Financial Services, Prabhudas Liladher, Ess Dee Aluminum and others as part of collateral against company’s borrowings.
The company reported 42% year-on-year drop in its stand-alone net profit at Rs 43.54 crore the year ended June 2012 due to lower realization and higher interest cost.