Kirloskar Brothers Ltd shares closed at ₹1,899 on the NSE, declining ₹23.40 or 1.22% from Monday's close of ₹1,922.40, according to The Hindu BusinessLine. The stock touched an intraday low of ₹1,886 during Tuesday's trading session. Traded volume remained thin at 0.28 lakh shares with a traded value of ₹5.38 crore, while the company's total market capitalisation stood at approximately ₹15,088 crore at close.
The stock decline followed the company's Regulation 30 disclosure to stock exchanges on Monday evening, revealing an August 11 Supreme Court order in the matter of Kirloskar Brothers Ltd versus Atul Chandrakant Kirloskar and others, as reported by The Hindu BusinessLine. The court disposed of three Special Leave Petitions filed in 2021, directing constitution of a three-member arbitral tribunal to adjudicate disputes arising from a Deed of Family Settlement dated September 11, 2009. The DFS had originally divided management and control of various Kirloskar Group entities among different family branches.
The Supreme Court appointed Justice Nitin Madhukar Jamdar, former Chief Justice of the Kerala High Court, as arbitrator for Kirloskar Brothers, and Justice K.R. Shriram, former Chief Justice of the Madras and Rajasthan High Courts, on behalf of the contesting respondents, according to The Hindu BusinessLine. The two nominee arbitrators are to jointly appoint a presiding arbitrator within four weeks, with Pune as the seat of arbitration. The court left open all questions of arbitrability, including whether non-signatories to the DFS are bound by its arbitration clause, to be decided by the tribunal as a preliminary issue.
The company stated that the financial impact of the proceedings cannot be presently ascertained, as reported by The Hindu BusinessLine. Despite Tuesday's decline, the stock remains up nearly 18% year-to-date and has delivered over 400% returns in five years, indicating strong long-term performance despite current legal uncertainties.
