Mishtann Foods share price was locked in 20% lower circuit for a second consecutive session on December 9 after the company received a show cause notice from the capital market regulator Securities & Exchange Board of India (SEBI). Mishtann Foods shares have plunged 36% in two days as investors continued to dump the stock.
Sebi has barred Mishtann Foods Ltd and five of its directors from accessing the market, citing alleged financial misrepresentation and fraud. The regulator’s interim order came after its investigation from 1 April 2017 to 31 March 2024, and revealed alleged serious financial irregularities in the company.
Mishtann Foods was found to have inflated its sales and purchase figures through the creation of fake entities — many of which were linked to the company’s managing director Hiteshkumar Gaurishankar Patel, and his relatives, according to the SEBI order. These shell companies were used to move funds between Mishtann Foods and its associates, distorting the company’s financials.
However, the company rejected the allegations made in Sebi order and said that its legal team was making efforts to address the queries.
“MFL doesn’t agree with the contents and the prima facie observations of the said Interim order. The management of MFL totally denies all the purported allegations mentioned in the Interim Order cum Show Cause Notice dated 05/12/2024,” Mishtann Foods said in a regulatory filing on December 6.
The legal & compliance team at MFL is making efforts to address the queries and take appropriate actions in accordance with the rights vested in law, it added.
Mishtann Foods Share Price Trend
Mishtann Foods share price has fallen over 29% in one week and more than 31% in one month. The stock has declined 38% in six months and has dropped more than 39% year-to-date (YTD).
At 1:05 PM, Mishtann Foods shares were still locked at 20% lower circuit at ₹9.94 apiece on the BSE.
