Hikal receives closure notice for Taloja manufacturing unit from MPCB; stock slumps 4%

17 Feb 2022 , 10:10 AM

Hikal Limited has received a notice from the Maharashtra Pollution Control Board (MPCB) on February 15, 2022, for the closure of the company’s manufacturing unit located at MIDC Taloja, Dist. Raigad, within 72 hours of the receipt of the said notice, in view of certain alleged non-compliances of the conditional Consent to operate and the recent Surat issue.

The Taloja unit had contributed ~ Rs260 crore amounting to around 15% of the turnover of the company for the financial year 2020-21, the company said in a filing on Wednesday.

The company stock was under pressure on Thursday morning. At around 10.14 am, Hikal Ltd was trading at Rs392.55 per piece down by Rs17.6 or 4.29% from its previous closing of Rs410.15 per piece on the BSE.

“The company is taking appropriate legal measures as advised by counsels before the Pollution Board as well as Courts to remedy the situation and seek reliefs against the Closure Notice.

Hikal being a Responsible Care Certified company stands by its commitment to long term sustainability and ethical way of doing business,” company said.