Shares of Huhtamaki
dropped 5% in the late morning session on Thursday on receipt of closure directions for its Thane plant from Maharashtra Pollution Control Board (MPCB).
As per its filing to the exchanges, the company on November 20, has received closure directions from MPCB for its manufacturing activities, within 72 hours. An order also directed the company to take all precautionary measures for safe closure, in relation to its Thane Plant.
According to MPCB, the company has violated Maharashtra Plastic and Thermocol Products Notification dated March 23, 2018, and Maharashtra Non-Biodegradable Garbage (Control) Act, 2006.
Incidentally, the company has filed a writ petition in the Bombay High Court on November 21, challenging and setting aside the closure direction. Further, to ensure continuity of supplies its customers, the company shall divert the customers’ orders to its other plants, situated across India.
Huhtamaki PPL share price is currently trading at Rs205.50, down by Rs2.25 or 1.08% from its previous closing of Rs207.75 on the BSE.
The scrip has opened at Rs200. It has touched a high and low of Rs211 and Rs192, respectively. So far 1,02,729 (NSE+BSE) shares have been traded on the counter. The current market cap of the company is Rs1,568.97cr.