Hikal clarifies on various media articles relating to a Gas Leak incident at Sachin GIDC area

10 Jan 2022 , 04:06 PM

Shares of Hikal Limited ended lower as its name was associated with a Gas Leak incident by various media houses. Consequently, Hikal issued a clarification addressing its stakeholders on the matter where name of the company has been associated with a Gas Leak incident by various media houses.

The company issued its statement as per regulation 30 of the SEBI Listing Obligations and Disclosures Requirement) Regulations, 2015, and stated that the company wishes to inform the stakeholders that Sodium Hydro Sulphide (dilute solution 16%) which is a non- hazardous chemical is generated at the Taloja plant of the Company that was entrusted to Sangam Enviro Private Limited for processing and onward sale to the textile/cement sector.

As per several media reports, around 6 people died and 23 were hospitalized in Surat due to exposure to toxic fumes. Hikal clarified on the matter that this leakage was from a different tanker bearing No. GJ-06-ZZ-6221, and was not the same tanker that left the company’s premises in Taloja.

The matter is under investigation in Surat Police’s jurisdiction and company is rendering all necessary assistance in the matter, the company said in the filing.

The clarification was also issued with a view to provide stakeholders reasonable assurance that the company is abiding by all rules & regulations and follows the highest level of HSE standards while conducting business.

The letter further also stated that Hikal wishes to inform its stakeholders that all their manufacturing sites are currently operating normally and there has not been any disruptions in any of the operations. The stakeholders will be updated about any further development in the said incident, it added.

The stock ended at Rs535.50 down by Rs17.1 or 3.09% from its previous closing of Rs552.60 on the BSE. The scrip opened at Rs502 and has touched a high and low of Rs548.15 and Rs498 respectively.