Shree Cement shares: LIC, FPIs, MFs take Rs 2,500 crore notional hit as stock tanks

With shares of Shree Cement plunging 10 per cent in Monday's trade, foreign portfolio investors, mutual funds and Life Insurance Corporation of India (LIC), took a combined Rs 2,500 crore hit on their investments, notionally. In the case of LIC, the insurer held 13,81,785 shares or 3.83 per cent stake in Shree Cement as on March 31. On Monday, the scrip fell 10.11 per cent to hit a low of Rs 22,601.30. LIC's 3.83 per cent stake in Shree Cement was valued at Rs 3,474.74 crore on Friday.

A 10.11 per cent fall in Shree Cement shares meant LIC roughly took Rs 351 crore hit on its investments, notionally. For 492 foreign portfolio investors, who owned Rs 11,631 crore worth Shree Cement shares as on Friday, the dent amounted to Rs 1,176 crore.

A total of 28,154 retail investors also owned Shree Cement 1.93 percent stake in Shree Cement as on March 31. These investors, who owned up to Rs 2 lakh worth shares in the company, saw Rs 177 crore erosion in value.

Meanwhile, 22 mutual fund houses including SBI Mutual Fund (2.99 per cent) and Axis Mutual Fund (2.12 per cent) together owned 6.88 per cent stake in Shree Cements. This institutional category took Rs 631.05 crore in notional loss.

Shree Cement shares fell amid reports an income tax (I-T) evasion amounting to Rs 23,000 crore was found in searches at multiple company locations. The I-T department was conducting a survey action at five locations of the company in Rajasthan last week.

"We have gathered that a lot of negative information about the company and its officials is floating in certain sections of the media in connection with the above survey. We would like to clarify that the survey is still going on. The entire management team of the company is available and extending full cooperation to the officials. Any information circulating in the media otherwise is incorrect and has been published without seeking prior inputs from the company," Shree Cement said.

The stock dived 10.12 per cent to hit a day low of Rs 22,601.30 over its previous close of Rs 2,5144.85, marking their steepest drop in over three years. The scrip continued to fall for the sixth straight session today.

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