Shares of Sigachi Industries came under sharp selling pressure on Monday, December 29, with the stock sliding nearly 7% to trade around Rs 31.60 on the NSE, as investors reacted to a fresh legal development linked to the fatal fire incident at the company’s Hyderabad unit.
Key trigger: MD & CEO remanded in fire incident probe
The sharp decline in Sigachi Industries’ share price follows reports that Amit Raj Sinha, Managing Director and Chief Executive Officer of the company, has been remanded to judicial custody in connection with the June 2024 explosion at Sigachi’s Pashamailaram (Bhanur) unit in Telangana, which claimed the lives of 54 workers.
According to reports, the BDL-Bhanur police arrested Amit Raj Sinha, naming him Accused No. 2 in the case. He was produced before a magistrate and has been sent to 14 days of judicial remand at Kandi Central Jail. The case pertains to alleged culpable homicide due to negligence and violation of safety norms.
Background of the incident
The massive explosion occurred on June 30, 2024, at Sigachi Industries’ manufacturing facility in Sangareddy district. Following the incident, a criminal case was registered against the company’s management for flouting safety regulations. There are reportedly six accused, all linked to the company.
The Telangana High Court, while hearing a public interest litigation filed by a group of retired scientists, had repeatedly questioned the delay in arrests, expressing dissatisfaction with the pace of the investigation. The recent arrest reportedly came after the court pushed for accountability from the management.
Market reaction
The arrest and remand of the company’s top executive have heightened investor concerns around governance, regulatory scrutiny, and potential legal liabilities, leading to aggressive selling in the stock during Monday’s session.
At the day’s low, Sigachi Industries shares were down about 6.9%, eroding investor confidence despite no fresh operational update from the company.
Stock snapshot (as of Monday, December 29)
Sigachi Industries shares were trading at around Rs 31.60, compared with a previous close of Rs 33.95. The stock has now slipped close to the lower end of its 52-week range, reflecting sustained pressure following the legal developments.
What investors are watching next
Market participants are now closely tracking:
- Any official clarification or disclosure from Sigachi Industries
- Further updates from the investigation and court proceedings
- Possible regulatory or compliance actions arising from the case
Until clarity emerges, sentiment around the stock is likely to remain cautious.
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