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Change in Leadership at Patel Engineering Leads to 12% Stock Price Drop



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Shares of Patel Engineering witnessed a significant fall of over 12% in the trading session as news of a change in leadership surfaced. The company suffered a blow with the sudden and untimely demise of its Promoter and Chairman, Rupen Patel, on Friday, July 5, 2024. This unfortunate event prompted the company to restructure its directorate and management.

In the wake of Rupen Patel’s passing, Patel Engineering notified about the appointment of Janky Patel as an additional director and Non-Executive Director. Effective from July 6, 2024, Janky Patel will be designated as the ‘Chairperson’ of the company. Furthermore, Kavita Shirvaikar has been named as the Acting Managing Director from the same date, relinquishing her position as the CFO.

Rahul Agarwal will assume the role of Acting Chief Financial Officer at Patel Engineering, effective from July 6, 2024, post Kavita Shirvaikar’s transition to Acting Managing Director. The Board of Directors orchestrated these changes to navigate through this challenging period.

Following the demise of Rupen Patel and the subsequent management reshuffle, Patel Engineering’s stock plunged by more than 12.11% on Monday, reaching Rs 60.67. The market capitalization hovered around the Rs 5,000 crore mark, reflecting the investors’ reaction to the unfolding events. Prior to this decline, the stock had settled at Rs 69.03 in the previous trading session on Friday.

Established in 1949, Patel Engineering stands as a prominent Indian infrastructure and construction company, engaged in a wide array of projects ranging from dams, tunnels, and hydroelectric projects to highways, bridges, and real estate ventures. The company’s trajectory saw a remarkable journey over the years under the leadership of Rupen Patel.

As uncertainties loom over Patel Engineering due to the unfortunate loss of its Chairman, the industry will closely monitor how the newly appointed leadership steers the company forward. Despite the recent setback, Patel Engineering’s enduring legacy and commitment to excellence remain central to its operations.

Living Media India Limited. For reprint rights: Syndications Today

Rachel Adams

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