Deepak Fertilisers has been right there among the top five gainers since yesterday. In fact over the two days, till now, it has already gained almost 28.5%. Today, it opened with a gain of over 4% at Rs.76 and went on to hit an intraday high ay Rs.87.20, a jump of almost 19.5%.
This gain is also thanks to a clarification. In these troubled times, it looks like there is too much news being churned out without getting an official word, pushing down the stock price. Today, there stocks in the gainers list – Indiabulls, Bandhan Bank and Deepak are all on account of clarifications issued by the companies, refuting rumours.
There was a report in the Economic Times website stating that the company is among the companies whose promoters have pledged more than 70% of shares and therefore carries the risk of losing control of the entity.
Deeepak Fertilisers issued a clarification on 18th afternoon refuting this news, calling it “factually incorrect.”
The company said, “During October 2019, International Finance Corporation (IFC) subscribed to the first tranche of US$ 30 million (i.e. approx. Rs.210 Crores), by way of Foreign Currency Convertible Bonds (FCCBs) and Compulsory Convertible Debentures (CCDs) into DFPCL and its wholly owned subsidiary Smartchem Technologies Limited (STL). Non-Disposal Undertaking (NDU) has been provided by Promoter of DFPCL to IFC for CCDs issued by Smartchem Technologies Ltd., which is usual in such transactions.”
It said further that as per the undertaking the promoters agreed, it undertook not to dispose of the shares and as such there is no pledge of shares. In fact, with the NDU it is ensured that the promoters continue to own the shares which is completely contrary to the theme of the news item that the promoters run the risk of losing control of the entities because of pledge
The company requested that 'Non Disposal Undertaking' be categorized differently in the exchange website instead of classifying such undertakings as encumbrance or pledge as these are misunderstood by general public and investors.