Top fund houses take a big hit with Manpasand’s slide


recent rout in shares of fruit juice maker Manpasand Beverages, with Motilal OswalAsset Management Company taking the biggest hit.

Manpasand Beverages’ shares ended at Rs 275.85 on Tuesday, hitting the 20 per cent lower circuit for the second consecutive session after its auditor Deloitte Haskins & Sells resigned ahead of a board meeting scheduled on May 30 for consideration of financial results. The board meeting has been cancelled.

These fund houses, which collectively held 11.7 per cent stake (1.3 crore shares) in the beverage maker at the end of April, valued at Rs 533.53 crore, have seen value eroding to Rs 368.68 crore, data from Accord Fintech showed.

The value of Motilal Oswal AMC’s holding of 64 lakh shares in Manpasand, which stood at Rs 255.81 crore has come down to Rs 176.77 crore after the fall. This is assuming that the holdings of these fund houses have not changed in between end of April and now.

Shares of Manpasand Beverages, which listed in July 2015, are down 37 per cent so far in 2018 and about 14 per cent lower from its IPO price of Rs 320 per share.

“Despite the management’s clarification on the event being ‘coincidental’ (auditor resigning just before Q4 results) and it re-iterating its confidence on long term growth prospects of the company, the stock witnessed significant selling pressure. We believe the stock could face uncertain times in the near term in wake of this development,” said Religare in a note, suspending coverage on the stock.