Greaves Cotton is among the top losers on the BSE, opening 4% lower at Rs.142.55, going down to hit an intraday low at Rs.134.20. Its 52-week high and low stands at Rs.184.50 and Rs.118.70 respectively.
The stock price fell today, reacting to the company’s announcement that the Ministry of Heavy Industries (MHI) has alleged that Greaves Electric Mobility (GEMPL), material subsidiary of the company, purportedly failed to adhere to Phased Manufacturing Programme Guidelines and allegedly has proposed to deregister it from FAME India Scheme Phase II.
MHI has further purportedly directed GEMPL to deposit all the incentive claimed, which is approximately Rs.124 crore, along with interest.
The Board of Directors said that they will be reviewing and analysing the facts regarding the purported notice and the alleged violations for taking appropriate course of action including engaging with the Government to better understand the alleged violations and for a resolution, in accordance with law.