Welspun India extends losses to hit 52-week low

The stock was locked in lower circuit for the second straight day, down 20% at Rs 65.85, also its 52-week low on the BSE.

Shares of Welspun India were locked in the 20% lower circuit for the second straight day at Rs 65.85 on the BSE. Buyers stayed away from the counter after US-based Target Corp announced last week it was terminating business with the Indian manufacturer for substituting the cotton in bedsheets with a different type than the contracted Egyptian one. 

The stock is currently trading at its 52-week low, having tanked 36% in the past two trading sessions and down from Rs 103 on August 19, 2016. A combined 443,146 equity shares changed hands, with pending sell orders for 27.56 million shares on the BSE and NSE at 09:59 am.

Welspun India said that it has initiated actions to investigate the root cause.

“We are appointing an external auditor (one of the Big four) to audit our supply systems and processes. This is an issue of highest priority for us and we will take all necessary steps to address it,” the company said on Saturday.