On Monday, shares of Patel Engineering Ltd experienced a significant drop of more than 12.11%, closing at Rs 60.67. The market capitalization of the company barely stayed above the Rs 5,000 crore mark. This decline followed the announcement of a change in the company’s directorate and management after the sudden demise of its promoter and chairman, Rupen Patel, on Friday, July 5, 2024.
In a series of exchange filings over the weekend, the company informed stakeholders about the unfortunate event and subsequent management changes. The first filing stated, “We regret to inform you of the sudden and untimely demise of Rupen Patel, the promoter/Chairman and Managing Director of the company in the late hours of Friday, July 5, 2024.” Rupen Patel had been re-appointed as Chairman and Managing Director effective from April 1, 2024.
Following this, the board of directors approved the appointment of Janky Patel as an additional director and non-executive director, to be designated as the ‘Chairperson’ of the company effective from July 6, 2024. Additionally, Kavita Shirvaikar was appointed as the acting Managing Director of the company from the same date, stepping down from her previous position as CFO. Rahul Agarwal will replace her as the acting Chief Financial Officer, effective July 6, 2024.
Amid the demise and management reshuffle, Patel Engineering shares tumbled more than 12.11% to Rs 60.67 on Monday, a significant drop from Rs 69.03 in the previous trading session on Friday. Despite this setback, the company’s shares have shown remarkable growth over the past year. From a 52-week low of Rs 34.95, the stock has nearly doubled investors’ wealth. Since the beginning of FY24, the stock has surged more than 400%. It remains relatively stable in 2024 so far, with a 10% increase over the last month.
Founded in 1949, Patel Engineering is one of India’s major infrastructure and construction companies. It is involved in a wide range of projects, including the construction of dams, tunnels, micro-tunnels, powerhouses, irrigation projects, highways, roads, bridges, railway tunnels, refineries, and real estate.