KRBL Shares Plunge Over 9% Following Independent Director’s Exit Over Governance Concerns

KRBL Ltd.'s shares dropped by up to 12% on Monday, 15 September, following the resignation of its Independent Director, Anil Kumar Chaudhary, who cited concerns over corporate governance. This marked the company's largest single-day decline in over 3 years.

Reasons for Resignation

As per news reports, in his resignation letter, Chaudhary stated, "In such an operating environment where dissent is suppressed or sidelined, remaining on the Board would compromise both my professional ethics and obligations as defined under Indian corporate governance codes." 

He pointed out that the current board dynamics do not align with principles of sound governance and independent oversight needed to protect stakeholder interests. He listed several issues, including:

• Discrepancies in the recording of meeting minutes.
• Information is being withheld, affecting informed decision-making.
• Arbitrary write-offs of export receivables without proper deliberation.
• Misuse of CSR funds.
• Unequal distribution of Variable Pay and Annual Increments to office holders or those in profit-making positions.
• Major amendments to the Object Clause without full discussion.
• Unwarranted interference by invitees during board and committee meetings.

Impact on the Company

Chaudhary added that, given the prevailing circumstances, "based on the current circumstances, he is unable to contribute meaningfully to the board's functioning in a manner envisaged under the regulatory framework for Independent Directors." 

KRBL had earlier disclosed its resignation on 9 September, but the detailed reasons were shared with exchanges only on 14 September. The resignation and governance concerns have triggered a sharp fall in investor confidence.

Read More: KRBL Share Price in Focus; Delivers 32% Revenue Growth in Q1 FY26 Results!

KRBL Share Price Performance 

As of September 15, 2025, at 1:54 PM, KRBL share price is trading at ₹401.60 per share, reflecting a decline of 9.57% from the previous closing price. Over the past month, the stock has declined by 14.96%. The stock's 52-week high stands at ₹495 per share, while its low is ₹241.25 per share.

Conclusion 

Chaudhary’s resignation highlights serious governance concerns at KRBL, affecting investor trust. His decision reflects ethical obligations and challenges in ensuring transparent and fair practices. The company's board dynamics and handling of sensitive matters have raised questions, prompting regulatory attention and investor scrutiny moving forward.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.