Tata Coffee was forced to issue a clarification to the stock exchanges on Thursday after shares in the company fell 20 per cent for a second straight day. Tata Coffee is India's largest coffee producer and exporter.
"With reference to increase in trading volumes and market price of the shares, Tata Coffee Ltd has clarified to BSE that at present there is no market sensitive information relating to the company that has not been shared with the exchange," Tata Coffee said in a filing to BSE.
Tata Coffee shares traded over 7 per cent lower at Rs 1,020.75 as of 2.35 p.m. after earlier falling to a low of Rs 880.25. The stock is now trading close to its 52-week low of Rs 811. Tata Coffee shares had crashed 20 per cent on Wednesday too, ending at Rs 1,100. (Track stock)
The crash in stocks was accompanied by a sharp rise in trading volumes. On the National Stock Exchange, over 3.1 million shares had been traded by 2.20 p.m. on Thursday against a 10-day average of nearly 20,000 shares (excluding Wednesday).
Tata Coffee does not trade in the futures market, so trading halts once the stock moves 20 per cent in either direction. The company's market cap has gone down by a whopping Rs 600 crore in just two sessions.
Tata Coffee partnered with Starbucks, the world's biggest coffee chain, to establish retail outlets in India. They launched their first store in Mumbai in October 2012.