Amid a sharp correction in equities, shares of Zomato, Larsen & Toubro (L&T) Infotech, Solara Active Pharma Sciences, Indiabulls Real Estate, Tata Teleservices (Maharashtra) (TTML), and TV18 Broadcasting from the S&P BSE500 index have fallen more than 25 per cent in the past one month. The S&P BSE Sensex, meanwhile, was down 6.6 per cent in the past one month.
Individually, shares of Zomato hit a new low of Rs 64.70, down 7 per cent on the BSE in Wednesday's intra-day trade. The stock traded lower for a fifth straight day and has slipped 19 per cent during the period. In the past one month, it has corrected 25 per cent following reports that the Competition Commission of India (CCI) has ordered a detailed probe against food delivery platforms, Zomato and Swiggy, for alleged unfair business practices with respect to their dealings with restaurant partners.
On its part, Zomato has clarified that the company will continue to work closely with the Commission to assist them with their investigation and explain to the regulator that their practices are in compliance with the competition laws. "We intend to promptly comply with any recommendations given to us by the Commission," Zomato said in an exchange filing. CLICK HERE FOR FULL REPORT
The stock price of Zomato has more-than-halved this year, and is down 53 per cent, from a level of Rs 137.75 touched on December 31, 2021. Institutional investors, led by foreign portfolio investors (FPIs) and mutual funds (MFs), have collectively reduced stake by 2 percentage points or 152 million equity shares in Zomato in the January-March quarter (Q4FY22).
Individually, MFs have sold 83 million equity shares or 1.1 percentage point stake in the company during the quarter. Their holding in Zomato decreased to 2.82 per cent from 3.88 per cent at the end of December quarter (Q3FY22).
Meanwhile, Solara Active Pharma Sciences, too, hit a 52-week low of Rs 500.50 in the intra-day trade today. In the past three trading days, it has tanked 27 per cent after the company announced that Rajender Rao Juvvadi has resigned from the position of Managing director and CEO (MD & CEO) and directorship of the company with effect from April 28, 2022.
Jitesh Devendra, former CEO and Managing Director (MD) of the company will return to Solara as MD, to steer the reset strategy of the Company, it said.
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