The Asian Paints stock tumbled on the bourses yesterday hitting the lower end of the circuit filter on the National Stock Exchange (NSE). The stock opened at Rs 337 on the bourse and slipped to Rs 318.65.
The trading in the stock was frozen, thereafter, after it found no buyers in the markets. The stock had on Thursday closed at Rs 342.60. The stock met a similar fate on the BSE where it lost Rs 27.75 to close at Rs 315 against the previous close of Rs 342.75. According to brokers, the stock is expected to witness a further slump when the market opens on Monday.
Meanwhile, negotiations are continuing between Capital International, Morgan Stanley, DSP Merrill Lynch and the company. When officials at DSP Merrill were contacted, they declined to comment on the issue. The finalisation is expected to be completed by Monday as discussions are expected to last long, a DSP-Merrill spokesperson told Business Standard.
The National Stock Exchange has said that there is no question of any crisis on the bourse due the deal as it is done through the negotiated segment.According to the managing director of National Stock Exchange (NSE), R H Patil, the settlement of negotiated deals is the responsibility of the two parties involved.
The NSE does not provide for the settlement cover for any deal which is routed outside the screen. Thus, there is absolutely no crisis as far as the settlement at the exchange goes, Patil said.Brokers also said the decision to turn back on the Asian Paints deal may become breach of contract. When Sebi officials were contacted, they said that the regulator has no role to play as nobody has complained about the issue to them.
It is an investment decision and if a buyer is not interested in purchasing the stock he can turn back.
Atul Choksey stated at the AGM yesterday that he will continue as the managing director till the company requires his services. However, he admitted that his father, Champaklal Hiralal Choksey, had decided to sell off the Choksey stake in the company.
