NEW DELHI: Shares of shed 1.1% in Mumbai trading early Tuesday after the company on Monday issued a statement, accusing majority shareholder Prakash Chhabria of instigating shareholders to move against the reappointment of three directors perceived to be close to Chabbria’s cousin Deepak Kisandas Chhabria.
The company’s annual general meeting is scheduled for later today.
The statement issued by Finolex Cables on Monday came amid allegations of corporate governance issues flagged by proxy advisory firms and indicates that the battle to wrest control of the company has intensified between the two cousins.
At 09.35 hours (IST), the company’s scrip traded at Rs 484.70, down 1.1% on the National Stock Exchange.
Prakash Chhabria, son of the founder of the Finolex Group, has a controlling stake of 45.2 per cent in the Finolex Cables through 2 entities – Finolex Industries and Orbit Electricals — while Deepak Chhabria is the Executive Chairman of the company.
