Funds impacted by Manpasand Beverages sell-off

Continuous slide in the shares prices of Manpasand Beverages during the past three day have given worries to many investors. The mutual fund industry as a whole is impacted and returns of many schemes are hampered with this slide.

In the past two days, the company’s stock has witnessed a sharp downfall of around 20 per cent with consequent lower circuits. The primary reason behind this is the announcement that its statutory auditor, Deloitte India quit, last weekend. Further, the cancellation of its board meeting by the company has fueled this slide.

Before this, Manpasand was one of the most favoured stock by various investors and fund managers due to its unique business model and the past growth. But with this development, the stock is consecutively trading in negative territory, affecting the returns of many mutual funds.

Below-mentioned are the 5 most affected schemes that have holdings in Manpasand Beverages.

In a scheme-wise analysis, we have seen that Motilal Oswal Multicap 35 fund will be hampered more as it has the highest investment in the stock amounting Rs. 232.67 crores. SBI Magnum funds is the second scheme which is hampered with the hit as it has the investment of Rs. 104.67 crore in Manpasand stocks.

While looking at the individual fund houses, Motilal Oswal leads the table with the highest investment of Rs. 256.6 crore in the stock which is followed by ICICI Prudential and SBI.

Meanwhile, Manpasand has issued a statement to the investors that the situation involving Deloitte was ‘unfortunate’. Further, the statement said that it’s a pure coincidence that the financial results announcement and the auditor's resignation happened around the result announcement.

The stock has fallen 42 per cent in the past three days, whereas before that it has witnessed a slide of 38 per cent in the past one month.