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The stock of Arshiya International continues to suffer at the exchanges on Thursday despite the company clarifying about job loss. According to analysts, the clarification was 'vague' in nature. However, Bhushan Steel, which clarified that it has no exposure to Arshiya International, recovered.
Arshiya International stock crashed another 20 per cent in today's trade, the maximum permissible limit, at Rs 77.95 against the previous day's close of Rs 97.4.
Bhushan Steel, however, improved 2 per cent to Rs 457 against the previous day's close of Rs 448.
A newspaper report, on Wednesday, said that the Mumbai-based logistics major has sacked several top-level employees since Saturday on shrinking order book caused by a long slowdown in the infrastructure sector. Arshiya International stock crashed 20 per cent immediately. The Bhushan Steel stock too crashed 7.46 per cent on Wednesday on reports that it has an exposure to Arshiya International. However, it issued a clarification to the exchanges that it has not given any inter-corporate deposits to, and has no outstanding inter-corporate deposits with, Arshiya International Ltd.
Meanwhile, Kotak Securities has suspended its coverage on Arshiya International "due to lack of clarity" on the allegations of wrongdoing by the management. "We do not assign any target price to the stock," it added.
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