Sharp fall in Eveready Industries stock catches investors off-guard

Almost half the promoters' holdings in Eveready was pledged as collateral at the end of March. An e-mail sent to the company didn't elicit any response

The sharp fall in the share price of Kolkata-based Eveready Industries -- amid concerns over debt on the company's books and outstanding loans extended to group companies -- has caught marquee investors and domestic fund managers off-guard.

As of March 31, the value of non-promoter investors in the company stood at Rs 780 crore, which has shrunk to Rs 333 crore, taking into account the last traded price of the shares.

"The concerns over group debt and the possibility of pledged shares getting invoked have prompted us to start reducing our positions on the stock. We have been selling shares