Kwality is the top loser on the BSE, hitting the 5% LC at Rs.10.32. This is also its new low and counter is dotted only with sellers.
The company has defaulted on a loan payment of Rs.1200 crore to a foreign bank and it is thus being dragged to the National Company Law Tribunal (NCLT). The case is to be filed today and it is expected that other banks will also follow suit.
The company is a processor and producer of various types of dairy products including milk, ghee, butter, milk powder, curd, yogurt and cheese under the brand ‘Dairy Best’.
Kwality’s debt stands at Rs.2000 crore of which 80% s said to have gone bad. At a time when the likes of Parag Milk and Prabhat Dairy are raking in the moolah, Kwality has consistently shown only falling profits.
US-based private equity firm KKR & Co holds around 20% stake in the company.