Shares of Essar Shipping Ltd. came under sharp selling pressure on Thursday after news surfaced that the company had received a regulatory notice linked to a corporate fraud investigation. The stock hit the lower circuit, falling by 5% to ₹25.97 on the Bombay Stock Exchange (BSE).
The development triggered concerns among investors, though the company clarified that the notice would not affect its ongoing operations or financial activities.
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Regulatory Notice Raises Investor Concerns
According to the company’s disclosure to stock exchanges, the notice was issued under Section 212 of the Companies Act, 2013, seeking information and details on certain cases under investigation. The company confirmed that the notice was received from the Serious Fraud Investigation Office (SFIO) on August 13, 2025.
However, the notice bore the date August 11, 2025. Essar Shipping further clarified that it has provided the required details and that no additional directives or restrictions have been communicated so far.
Stock exchanges did not disclose further specifics of the notice. The company emphasized that the issue has no material impact on its functional or operational activities, reassuring stakeholders that business continuity remains unaffected.
Stock Performance Under Pressure
The regulatory disclosure comes at a time when Essar Shipping shares have already been facing downward pressure. Over the past month, the stock has declined by 7.3%, and on a year-to-date basis, it is down 27.6%.
In the broader market context, Essar Shipping’s shares have slipped nearly 30% this year, while recording a steeper fall of 42% over the past 12 months. Despite the recent slump, the stock has delivered gains of nearly 135% over the last five years, indicating significant volatility in its trading trajectory. Currently, the stock is under Stage 1 of the Enhanced Surveillance Measure (ESM) framework, which adds another layer of monitoring due to unusual price movements.
Market analysts suggest that while regulatory concerns may weigh on near-term investor sentiment, the company’s assurance of no direct operational disruption may provide some relief. The situation will likely evolve as more clarity emerges from the SFIO’s inquiry.
