Rohit Ferro Tech announces temporary suspension of work at Odisha factory; Stock slips ~5%

5 Apr 2022 , 01:05 PM

Rohit Ferro Tech Ltd has informed that the Factory of the Company situated at Jajpur, Odisha, is under temporary suspension of work.

As per the regulatory filing, the reason of temporary suspension of work is due to power cut by electricity supplying Company i.e., TP Northern Odisha Distribution Limited due to non-payment of outstanding dues.

The impact:
There is temporary reduction in output of finished goods which will not continue for long. Due to loss of daily production, there is negative impact of financial performance of the Company which is already under huge loss, said company.

Further, the company also informed in a filing that the Company is already under Corporate Insolvency Resolution Process (“CHRP”) with effect from 7th February, 2020. The ITon’ble NCLT, Kolkata Bench in its hearing on 10th March, 2022, has reserved the order with respect to approval of the Resolution Plan. The management hope for resumption of work in the said Factory within short period.

At around 1:09 PM, Rohit Ferro Tech was trading at Rs29.20 apiece down by Rs1.5 or 4.89% on the BSE.