Shares of Clean Science and Technology Ltd. staged a recovery on Thursday after the company clarified that a punching error by Spark Avendus led to extraordinary trading volumes during morning block deals.
According to a company executive who spoke to CNBC-TV18, the error resulted in as many as 6 crore shares changing hands, against the originally intended 2.5 crore shares. Despite the initial confusion, the company confirmed that the actual block deal size was 2.5 crore shares, translating to 24% of Clean Science’s outstanding equity.
Earlier in the day, Bloomberg data showed unusually high trading volumes, with reports suggesting that nearly 56% of equity had changed hands in three large block trades. This triggered a sharp sell-off, with the stock falling as much as 7% in early trade before bouncing back into positive territory after the clarification.
The buyers and sellers involved in the block deals are still unknown, and further transaction details are yet to be disclosed.
Clean Science, a specialty chemicals manufacturer, has been one of the top names in the industry, known for developing eco-friendly catalytic processes and supplying functionally critical specialty chemicals for FMCG and pharmaceutical intermediates.
Market watchers say that while the error-induced volume spike caused temporary volatility, the company’s clarification should help stabilize investor sentiment going forward.
