Patel Engineering shares dive 12% after demise of promoter & CMD

Shares of Patel Engineering cracked more than 12 per cent during the trading session on Monday after the company announced change in its directorate and management after the demise of its promoter and chairman on Friday. The company informed about the same through multiple exchange filings over the weekend.
 

"We regret to inform you of the sudden and untimely demise of Rupen Patel, the  promoter/Chairman and Managing Director of the company in the late hours of Friday, July 5, 2024, " said the first exchange filing. He was re-appointed as Chairman & Managing Director of the Company effective from April 1, 2024, it added.
 

Subsequent to this, the company board of directors have approved Janky Patel as an additional director/NonExecutive Director, to be designated as 'Chairperson' of the Company effective from July 6, 2024, said another exchange filing.
 

Kavita Shirvaikar as an acting managing director of the company effective from July 6, 2024. She stepped down from the position of CFO. She will be replaced by Rahul Agarwal as an acting chief financial officer of the company effective from July 6, 2024, the exchange filing added.
 

Amid the demise and management rejig, shares of Patel Engineering Ltd tumbled more than 12.11 per cent to Rs 60.67 on Monday, with its market capitalization barely holding above Rs 5,000 crore mark. The stock had settled at Rs 69.03 in the previous trading session on Friday.
 

Shares of Patel Engineering have nearly doubled investors wealth from its 52-week low at Rs 34.95, hit a yead ago. The stock has surged more than 400 per cent since the beginning of FY24. The stock is nearly flat in the year 2024 so far, while it is up 10 per cent in the last one month period.
 

Patel Engineering, founded in 1949, is among India's major infrastructure and construction company, which is into construction of dams, tunnels, micro-tunnels, powerhouses, irrigation projects, highways, roads, bridges, railway tunnels, refineries to real estate and more.