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Kaveri Seed Co Ltd's shares extended falls into a fifth session on Wednesday, shedding as much as 12.3 per cent to a 27-month low.
The stock had lost almost 18 per cent of its value, as of last close, after the seed company posted a near 33 per cent drop in third-quarter profit on February 14, hurt by higher expenses, and named a new chief financial officer.
Earlier, the Hindu BusinessLine had reported that Andhra Pradesh suspended the company's licence over “illegal sowing of herbicide tolerant (HT) cotton seeds” .
“There is a long-drawn litigation process about the revoking of licence, it will affect their performance,” said Umesh Mehta, head of research at Mumbai-based Samco Securities Ltd. “There are fears that other states might follow suit and cotton (seed) sales could be heavily impacted.”
Telangana-based Kaveri Seed was not immediately available for comments.
Kaveri Seed's shares fell to a low of Rs 368.80 and were down 4.5 per cent at Rs 401.5, as of 0752GMT, in high-volume trade. Nearly 18.6 million shares had changed hands by 0752 GMT, 18.2 times their 30-day average.
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