The Arshiya International scrip tanked close to 20 per cent (19.97 per cent) on reports of senior management being fired.

It hit the circuit breaker at 10.56 a.m. on the BSE on Wednesday and closed at Rs 97.4, down Rs 24 to a share. Total traded quantity was 17.09 lakh shares as against the two–week average of 29,000.

In a clarification to the exchanges in the afternoon, the company said, “There have been some news items in some sections of the press on January 9, regarding operations and affairs of the company which are misleading and not true. Further, the company has clarified that it has taken a call on rationalising its employee costs/ removing non-performers in the overall interest of the company.

“Arshiya International has real assets that it has created in the West and North of India, including pan-India rail assets. All of these assets created by the company are operational and continue to remain operationally strong.”

Meanwhile another listed company Bhushan Steel refuted reports that it had given inter-corporate deposits to Arshiya.

No inter-corp deposits

In an exchange filing after market hours, it said: “There are media reports that Bhushan Steel has given inter-corporate deposits to Arshiya International. In this connection, the company has clarified, it has not given any inter-corporate deposits to and has no outstanding inter-corporate deposits with, Arshiya International.

“The said media reports are false and speculative in nature, and are not based on any information released by the company.”

On January 2, Archana Mittal, the promoter of the company pledged eight lakh shares in favour of Ganjam Trading. This was disseminated by the exchanges on January 3 in the morning.

Mittal had already pledged 1.89 crore shares (72 per cent) out of the promoter holding of 2.62 crore shares as on September 30, 2012.

raghavendrarao.k@thehindu.co.in

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