When the market opened for trading today morning, SRF was the top loser. It went down almost 8.5% to Rs.2201; a big climb down from a new 52-week high at Rs.2476.40 it had hit on 25th March. It has recovered a bit and is now trading at Rs.2335 levels.
The stock price has reacted to the news of the closure of its plant at Dahej at the directions of the Gujarat Pollution Control Board.
On Friday, late in the night, SRF announced that the Gujarat Pollution Control Board had issued directions under Water (Prevention and Control of Pollution) Act, 1974 to the company to close the operations of its industrial plant at Dahej in the State of Gujarat due to alleged non—compliance with the provisions of the said Act. The inspection was carried out on 25th March and the regulator found two tankers full of highly concentrated waste, probably to be disposed at a common disposal facility, which is not allowed without prior approval.
The company has said that it is in the process of filing a detailed appropriate reply clarifying its position with regard to the issues raised.
The company, as per the state pollution board has violated the industrial waste disposal norms. It has also installed a calcium chloride plant without seeking permission from the regulator.
Majority of its chemical business income comes from this plant at Dahej and a closure till the issues gets cleared will reflect on the EBITDA.