Cancellation of license of listed company, allegation of employment of child labour, impact on shares?

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Some distilleries share: Some listed distilleries and breweries have taken a big hit. In fact, the Madhya Pradesh government on June 19 suspended the license of Som Distilleries after rescuing child laborers in Raisen district. According to the Excise Department, child laborers were rescued from a liquor factory in Madhya Pradesh’s Raisen district. The department further said that the minors were hired by a unit of Som Distilleries without police verification. Action has been taken in this matter. The suspension of Mon Distilleries will remain in place for a period of 20 days or until the Labor Department approves the resumption of activities.

There was a big fall in the stock

The National Commission for Protection of Child Rights (NCPCR) rescued 39 boys and 19 girls from the company’s subsidiary distillery in Madhya Pradesh. All these were child labourers. Shares of Mon Distilleries fell by 16 percent on Tuesday after this news. However, the stock fell slightly in Wednesday’s trade and traded on the BSE at Rs. was 115.85. Let us tell you that Som Distilleries & Breweries is an ISO-certified group of companies manufacturing and supplying Beer, IMFL (Indian Made Foreign Liquor) and RTD (Ready to Drink) beverages.

The company has clarified

Som Distilleries clarified the matter on June 17. The company said workers for the subsidiary were supplied by contractors who did not conduct proper age verification before allowing workers into the factory. We want to assure you that all our company’s plants are in full compliance with applicable laws and have all necessary permits, the company said. Let it be known that Som Distilleries’ Bhopal plant currently has a capacity of 15.2 million cases of beer and 0.6 million cases of Indian-made foreign liquor per year. It is also serving areas of Rajasthan, Jharkhand and Uttar Pradesh from its Bhopal plant.

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