KRBL gets sticky

KRBL is the top loser on the BSE since the opening bell today; the stock, which had closed at Rs.444.10, opened lower today at Rs.401.35 and went down further to an intraday low at Rs.387.05.

The stock price is down on some governance issues cropping up. Anil Kumar Chaudhary, an Independent Director at KRBL Ltd., resigned with effect from 8 September 2025.

In his resignation letter, he said:

• Inconsistencies in recording minutes of Board and Committee meetings.
• Instances of information being withheld, hampering informed decision-making.
• Unjust write-off of certain export receivables without proper deliberation.
• Concerns about the use of CSR (Corporate Social Responsibility) funds.
• Arbitrary distribution of variable pay and annual increments to persons in office or place of profit.
• Significant changes to the Object Clause (company charter) carried out without comprehensive discussion.
• Undue interference by invitees (non-board members/other persons perhaps) in proceedings of Board or Committee meetings.

The company issued. Statement saying that there are no material reasons for his resignation beyond those he listed in his letter. In other words, they are saying there isn't some other undisclosed scandal or issue besides what Chaudhary has already declared.

Even though the company says there are no material reasons , these are multiple governance red flags and it does bring concern about what could be happening within. The drop in the share price suggests the market is reacting strongly, possibly fearing that these issues might lead to legal, audit, or regulatory actions, or damage to reputation and business.