A trader reacts as he looks at financial data on computer screens on the trading floor at ETX Capital, a broker of contracts-for-difference in London, U.K. (Photographer: Chris Ratcliffe/Bloomberg)  

Manpasand Beverages Is Turning Out To Be An Investor’s Nightmare

Investors looking to sell their holding in Manpasand Beverages Ltd. to cut losses would have found it difficult to exit.

That’s because the maker of juices has remained locked at the lower circuit—the maximum it’s allowed to fall in a session—for three straight days. The stock has plunged more than 42 percent in the three sessions after the company informed the stock exchanges that its auditor resigned days before the board was to approve its quarterly results.

The maker of Mango Sip is 51 percent owned by institutions, while non-institutional shareholders own a little over 5 percent. Private equity firm SAIF Partners held 17.57 percent in the company as of March 31, according to its filing. Nomura owns 5 percent and mutual funds hold 11.60 percent.

Also read: Auditor Quit As Manpasand Beverages Didn’t Share ‘Significant’ Information

While the company didn’t disclose the reason to the exchanges, the auditor—Deloitte Haskins & Sells—said in a letter filed with the Registrar of Companies that the management didn’t provide “significant information” despite repeated requests. A company statement had called its resignation “coincidental and a minor hiccup”.

Manpasand Beverages hasn’t responded to BloombergQuint’s queries. It’s yet to respond to stock exchanges’ query seeking clarification.

Ever since its auditor quit on May 26, three brokerages—Kotak Securities, Motilal Oswal Securities and India Infoline—have withdrawn their rating on the stock. Manpasand Beverages now has 83 percent ‘Buy’ calls compared to 90 percent at the beginning of the month.

Manpasand Beverages Is Turning Out To Be An Investor’s Nightmare

Also read: The Worst-Hit Mutual Fund Schemes After Manpasand Beverages Tumbles 

Manpasand Beverages last raised Rs 500 crore in September 2016. Several of the existing shareholders including Motilal Oswal, SBI Magnum Fund, ICICI Prudential and Nomura participated in the issue.