KRBL Share Price Falls Nearly 10% After Independent Director Resigns

The shares of KRBL slumped nearly 10% in trade so far after Anil Kumar Chaudhary, one of the independent directors turned in his resignation. The director had cited corporate governance issues, according to an exchange filing on Sunday.

"After careful thought and consideration, I have concluded that I am no longer able to meaningfully contribute to the Board's functioning in the manner envisioned under the regulatory framework for independent directors. I believe that effective governance and truly independent oversight are essential ingredients for safeguarding stakeholder interests and I find the prevailing dynamics of the Board to be inconsistent with these principles", Chaudhary stated in his resignation letter.

He added that these issues have continued to exist despite his attempts at resolving them through constructive dialogue, posing professional and ethical dilemmas.

Furthermore, he also informed that he has brought his concerns whenever appropriate to seek resolution and that, "In such an operating environment where dissent is suppressed or sidelined, remaining on the Board would compromise both my professional ethics and obligations as defined under Indian corporate governance codes."

KRBL stock fell as much as 12.83% during trade so far to Rs 387.1 apiece on the NSE. It was trading 8.53% lower at Rs 406.2 apiece, compared to an 0.06% decline in the benchmark Nifty 50 as of 10:38 a.m.

It had declined 32.46% in the last 12 months and 34.16% on a year-to-date basis. The total traded volume so far in the day stood at 7.5 times its 30-day average. The relative strength index was at 53.7.

All three of the analysts tracking the company have a 'buy' rating on the stock, according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 527, implying a upside of 29.8%.