Shares of Indokem Ltd hit 5% lower circuit on 18 November after MPCB ordered the company to shut operations at its Ambernath, Pune unit. 

The selling pressure on the counter came after the Maharashtra Pollution Control Board (MPCB) ordered the company to close its manufacturing unit in Ambernath, Thane, within 72 hours due to alleged violations of the Water (Prevention and Control of Pollution) Act, 1974, the Air (Prevention and Control of Pollution) Act, 1981, and the rules enacted under them.

In its regulatory filing, the company said, “We hereby inform you that the company has received a notice (Ref. No. MPCB/CD/2511140007) from the Regional Officer, Maharashtra Pollution Control Board (MPCB), Kalyan, Dist. Thane, directing the closure of the company’s manufacturing unit situated at Plot No. 128, Chikhloli MIDC, Ambernath, Taluka Ambernath, Dist. Thane, within 72 hours from receipt of the said notice, for alleged violations of the Water (Prevention and Control of Pollution) Act, 1974, the Air (Prevention and Control of Pollution) Act, 1981, and the rules framed thereunder.”

The company stated that it is in the process of submitting an adequate representation to MPCB for the revocation of the aforementioned closure direction. Indokem has underlined that its operations have always been carried out in accordance with all existing environmental and other statutory rules, and that the business will continue to do so.

Indokem manufactures chemicals, dyes, and textile auxiliaries. Indokem Pvt. Ltd. was established as a member of the Khatau Group in 1946. It is one of India’s first dye manufacturers. It has now become a market leader in the supply of textile dyes and chemicals to India. Our resourceful manufacturing capabilities, high-quality production, and cost-effective prices all contribute to our broad product portfolio.

At 1:09 pm, the shares of Indokem were locked 5% lower at Rs 829.15 on NSE.

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