Gillette gets 'cuts'

Gillette India is in the red, down currently 2% at Rs.2189.95 and this is on thin volumes , with 149 shares changing hands in the morning. Inrtra day low is at Rs.2167.

The stock is in the red following SEBI’s punitive action as the company did not meet the stipulated minimum shareholding of 25%. Promoters continue to hold 88.86% stake.

SEBI has frozen voting rights and the right to corporate benefits like dividend, rights, bonus, share splits of the promoters of the company. It has also barred Gillette promoters, promoter group and directors from buying and selling and dealing in securities and also from taking up the position of director in other companies, pending compliance.

And in a guarded warning, SEBI has stated that it continues to reserve its right to levy a fine, prosecute, move the scrip to trade-to-trade segment and exclude the scrip from the F&O segment. One wonder’s how the company will react to this  - immediately announce an OFS or choose to go for delisting?