Som Distilleries Shares Plunge 16% Amid Child Labour Probe
This comes after a case was filed against one of the company's contractor for employing over 50 children in it's factory in Madhya Pradesh's Raisen district.
Shares of Som Distilleries and Breweries Ltd. went down nearly 16% on Tuesday after one of the company's contractors came under police investigation for child labour concerns.
The company has blamed its associate private firm for not verifying employees' age, and terminated all contracts with them.
A case under juvenile justice and bonded labour laws was filed on Sunday, following the National Commission for Protection of Child Rights' discovery of over 50 children in the liquor factory in Madhya Pradesh's Raisen district.
The National Commission for Protection of Child Rights is coordinating with local authorities to rescue the children and initiate legal proceedings. A First Information Report has been registered, and a notice issued to the state government to act against the involved excise officer, the report said.
Som Distilleries and Breweries Ltd. fell as much as 15.74% during the day to Rs 105 apiece on the NSE, the lowest since March 28. It was trading 6.69% lower at Rs 115.98 apiece, compared to a 0.25% advance in the benchmark NSE Nifty 50 as of 9:18 a.m.
It has risen 12.05% in the last 12 months. The relative strength index was at 37.25.
One analyst tracking the stock has a 'buy' rating according to Bloomberg data.
