KRBL shares plunge up to 12% after independent director exit over governance issues
Published on 15/09/2025 01:23 PM
India’s largest basmati rice exporter, KRBL shares slumped sharply on Monday, September 15, after an independent director resigned citing serious corporate governance lapses. The stock tumbled as much as 12 per cent intraday before trimming some losses to trade down 9.3 per cent at Rs 402.70 on the NSE by 1:15 p.m. This is KRBL’s steepest single-day drop in more than three years.
Despite Monday’s sell-off, the counter remains up more than 45 per cent so far in 2025.
Anil Kumar Chaudhary, an independent director on KRBL’s board, stepped down last week. In a letter disclosed to the exchanges on Sunday, he alleged that the board’s functioning was “inconsistent with the principles of effective governance and independent oversight.”
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He cited multiple issues, including inconsistencies in board and committee minutes, withholding of information from directors, unjustified write-offs of export receivables, concerns over CSR fund usage, arbitrary decisions on variable pay and annual increments, significant changes to the company’s object clause without comprehensive discussion, and “undue interference” by invitees in board proceedings.
Chaudhary wrote that such an environment “suppresses dissent” and compromises the professional ethics expected of independent directors under Indian corporate governance codes.
The disclosure appears to have rattled investors, triggering heavy selling at the start of the week. Governance worries often weigh disproportionately on mid-cap stocks because of lower institutional ownership and thinner liquidity, even when business fundamentals remain strong.
Analysts said management’s response to the allegations will be crucial for stabilising sentiment. KRBL has otherwise been a standout performer in 2025, buoyed by strong basmati export demand.
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Senior Sub-editor at Zee Business English
shweta.shukla@India.com
Shweta Birendra Shukla is a journalist covering the stock market and corporate affairs, with prior stints at Business ...LATEST NEWSBy accepting cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.