Asian Granito gets 'arrested'

Asian Granito is down in the red today. The stock price slipped 13% to Rs.162.25, with volumes rising over 4 times.

The stock is reacting to the news of the arrest of promoter and MD of the company, Mukeshbhai Patel. He was arrested by Directorate of Revenue Intelligence; this was for a case related to an amount of Rs 3.5 crore.

Though the promoter is today out on bail and the amount involved is small compared to the others, the trust factor is lost. With corporate governance issues taking center stage, the market is obviously punishing the stock.