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Ashapura Intimates stock in free fall even as company's MD goes missing

Samie Modak/Mumbai 10 Oct 18 | 09:40 PM

Shares of Mumbai-based innerwear Ashapura Intimates Fashion are in a free fall, while Chairman and Managing Director Harshad Thakkar has gone missing. 

In the past two weeks, the stock has crashed more than 60 per cent and continues to hit lower circuit on the bourses everyday. 

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On Wednesday, shares of the company closed at Rs 171, valuing the company at Rs 4.3 billion. A month ago, the stock traded at Rs 445.


“This is to inform you that a missing person complaint has been filed with the Mumbai Police by the family of our managing director. The complaint is being presently investigated," the company said in a stock exchange notification on Wednesday.


“The professional management team along with Darshana Thakkar, who has been with the company since last few years and has been driving the design and production functions at the company, will be overseeing the operations of the company. The board of the company will be meeting in the first week of November 2018 to finalise the necessary actions for continuing the growth momentum in the business and capital requirement," the notice added.

The slide in the stock price has hit a few institutional investors, including DSP Mutual Fund, which held around 5 per cent stake in the company in the June quarter. 


Other institutional investors include Edelweiss Tokio Life Insurance and World Investment Opportunities Funds. The promoter holding in the company stood at 57 per cent at the end of June quarter. 


The latest shareholding in the company couldn’t be ascertained.


A large part of the promoter holding in the company is pledged.


The recent drop in share price has resulted in transfer of ownership of certain shares from the promoter to the 

IIFL group.


In another notification on Wednesday, IIFL Securities announced the acquisition of 28.72 per cent stake, which was pledged with it against a loan. This, along with 4.21 per cent stake already owned by India Infoline Finance, takes the IIFL group holdings in the company to 32.93 per cent. 


Promoters’ stake in the company stood at 57 per cent, which has reduced to around 24 per cent after the transfer to IIFL group. 


Market players said a large acquisition may trigger an open offer, as it would result in change of control at Ashapura Intimates. 


However, the shares acquired by IIFL don’t have any voting rights, says the disclosure made by IIFL.


Ashapura Intimates got listed in April 2013 on the BSE SME platform. In June 2015, the company’s shares were migrated to the mainboard. The company is currently valued at Rs 4.3 billion. 


Incorporated in 2006, Ashapura Intimates is an innerwear retailer under the brand name ‘Valentine’.

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