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Business News/ Markets / Stock Markets/  Transformers & Rectifiers India share price tanks over 18% after allegation of forging clearance certificate
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Transformers & Rectifiers India share price tanks over 18% after allegation of forging clearance certificate

Transformers & Rectifiers India's share price dropped 18% after Gujarat Energy Transmission Corporation decided to stop doing business with the company for three years due to allegations of forging Material Dispatch Clearance Certificates.

Transformers & Rectifiers India shares opened at intraday high level of ₹92.60 apiece on BSE on Thursday. Premium
Transformers & Rectifiers India shares opened at intraday high level of 92.60 apiece on BSE on Thursday.

Transformers & Rectifiers India share price slumped over 18% on Thursday's session following the news that Gujarat Energy Transmission Corporation Ltd (GETCO) would no longer do business with the company for three years due to allegations of forging Material Dispatch Clearance Certificate (MDCC). Transformers & Rectifiers India shares opened at intraday high level of 92.60 apiece on BSE

The company in an exchange filing stated that it had received a "Stop Deal" notice from GETCO dated July 13, 2023, which had been physically received by RPAD on July 19, 2023, and that GETCO had decided to stop doing business with the company for a period of three years on the grounds that the company had allegedly submitted forged MDCC relating to certain Transformers supplied by the company under the Contract awarded for supply of total 29 Transformers and 1 Reactor. 

The company confirmed further, stating that, as of right now, it has already provided 24 transformers and 1 reactor to GETCO in accordance with the aforementioned Contract. Additionally, based on past conversations about this matter with GETCO, it has successfully completed additional inspection tests in accordance with GETCO's specifications, and the above-mentioned transformers and reactor supplied under the said contract are in use at GETCO.

The company is taking the required actions to defend its position against this allegation and to resolve this matter.

On the technical front, as per trendlyne data, the stock price rose 263.7% and outperformed its sector by 193% in the past year.

“The stock was in uptrend however today we are seeing a strong gap down opening and prices are already down 17% , momentum is on downside, one should avoid to try catching the falling knife 80 is the next support whereas 98 - 100 to act as resistance," said Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One.

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Published: 20 Jul 2023, 09:39 AM IST
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