Som Distilleries Drops To Two-Month Low After Unit Loses Licence Over Child Labour
The stock fell as much as 8.62% during the day to Rs 105.90 apiece on the NSE.
Shares of Som Distilleries & Breweries Ltd. plunged nearly 9% on Thursday to the lowest level in over two months after the sister company's licence was suspended after children were rescued from its factory.
The Madhya Pradesh Government has temporarily suspended licence of Som Distilleries Pvt., which is part of Som Group, on Wednesday. As many as 50 children, including 20 girls, were rescued from its factory in Raisen district last week.
Som Distilleries has said the services of the contractor of the associated company had been terminated. The child labour case is related to the other company that deals in country liquor with different management, it said.
On the NSE, Som Distilleries' stock fell as much as 8.62% during the day to Rs 105.90 apiece, the lowest since April 1. It pared losses to trade 3.77% lower at Rs 111.53 per share, compared to a 0.05% decline in the benchmark Nifty at 9:35 a.m.
The share price has risen 7.1% in the last 12 months but fell 2.07% on a year-to-date basis. The total traded volume so far in the day stood at 18 times its 30-day average. The relative strength index was at 36.11.
An analyst tracking the company has a 'buy' rating on the stock, according to Bloomberg data.
