Shree Cement promoters under scanner for alleged corporate governance issues!
Last updated: 22 Apr, 2021 | 09:49 am
Shree Cement stock reaction
Shree Cements shares came under pressure on Thursday afternoon, after a report by proxy advisory firm InGovern Research Services alleged corporate malpractices by the promoters of the company.
What are the allegations?
- NBI Industrial Finance, a listed entity controlled by BG Bangur and family (promoters of Shree Cements), allegedly sold shares of some unlisted companies worth more than Rs 3,000 crore at a steep discount. These shares were sold to another privately-owned promoter group firm for just Rs 89 crores in FY17, according to InGovern.
- For this transaction, NBI Industrial Finance neither took shareholder permission nor published the valuation report, InGovern said.
- InGovern has said that it had written a letter to the Board of NBI on 9th February 2021 pointing out these issues and raising concerns on behalf of minority shareholders. However, NBI responded saying that “due process” has been followed, within the framework of law.
Shree Cement shares had come under pressure following the news, with the stock falling nearly 4% intraday. InGovern has now written a letter to markets regulator SEBI calling for an independent audit and independent valuation of the sale of shares and determination of the correct price at which the sale ought to have been executed. In case the corporate governance lapses get proven, it will impact the company. We will keep you updated in case of any further details.