Parle Industries, the maker of the iconic Parle G biscuits, appears to be deep in peril as the company shares have entered stage 2 of Enhanced Surveillance Measure or ESM.
Parle Enters ESM
This came to pass after the company shares hit the lower circuit on Friday’s trade. This fall in prices was followed by a raid that was conducted on Parle’s manufacturing facilities in Mumbai’s Vile Parle.
This raid was conducted in the Vile Parle head office and manufacturing facilities in Gujarat over alleged undeclared foreign assets.
This resulted in the company’s shares collapsing on Friday, declining by 1.98 per cent or Rs 0.35, taking the overall value of the company shares to Rs 17.35 per share.
What is ESM?
Here, the Enhanced Surveillance Measures or ESM is a regulatory system introduced by SEBI to control volatility in small-cap securities.
The market watchdog deploys the system for companies that have a market cap of less than Rs 500 crore.
When it comes to a Parle Industries’ Stage 2 of ESM, here, in this particular case, the price band is reduced to 2 per cent.
In this case, the trade settlement continues to follow the Trade for Trade mechanism. In addition, during this stage of the ESM, trading is permitted on all trading days through a Periodic Call Auction.
This PCA is a measure used to control volatility and there are usually six call auction sessions per day. Each of these last an hour.
Parle Shares In Decline
On Monday, the story was no different, as the company shares stumbled, hitting the lower circuit, falling to Rs 17.01. This came to pass after a decline of 1.96 per cent or Rs 0.34.
This figure is a far cry from the company’s historic numbers of over Rs 500 per share in 2007-2008.
These developments also come after a cataclysmic decline in the company’s profits. As the margin fell by a mammoth 466.67 per cent since last year’s same period. The overall profit stood at a pale Rs 0.22 crore in the Q3 2024-2025.
