Shares of electronics manufacturer PG Electroplast dipped after news of a fire that broke out at one of its warehouses but quickly bounced back after the company allayed concerns of a major financial impact.
What Happened: PG Electroplast reported a fire incident at one of its key warehouses located in Roorkee, Uttarakhand. The fire broke out during the early hours of Tuesday around 02:00 AM, at the warehouse situated in the Raipur Industrial Area.
The company said it acted swiftly and efficiently to tackle the fire, and with the assistance of the local fire department, successfully extinguished it. There have been no reported human injuries or casualties resulting from this incident.
Extent Of Damage: PG Electroplast said it was actively engaged in determining the exact cause of the fire and assessing the extent of damages sustained by the stock that was housed in the affected warehouse. Preliminary evaluations have indicated that it is not expected to have a significant impact on the overall operations and performance of the company, PG Electroplast said in a statement. However, the company is still carrying out a comprehensive assessment of the actual impact.
The major bounceback in the stock price may be due to the fact that the company has said there is adequate insurance coverage in place for the stock affected by the fire. PG Electroplast said it has already communicated with the relevant insurance company to initiate the claims process.
Get all the latest Share Market trends and news to set you up for the week ahead.
Price Action: PG Electroplast’s share price was up 1.22% at ₹1,965.55 around noon on Tuesday.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.