Redington shares fall up to 5% as arm's operations in Gulf region disrupted amid ongoing war

Redington shares fall up to 5% as arm's operations in Gulf region disrupted amid ongoing war

Redington shares fell more than 5 percent on Tuesday after the company said operations of its arm in the Gulf region are being carried out in a restricted manner due to ongoing geopolitical tensions. The stock declined 5.15 percent to an intraday low of Rs 221 on the National Stock Exchange (NSE). The shares have been falling for the past five trading sessions and have dropped more than 12 percent during this period. In an exchange filing, the company said its step-down subsidiary, Redington Gulf FZE, has restricted operations in the Gulf region amid the ongoing geopolitical situation. The company said the disruption has led to rerouting of shipments and closure of major ports and airspace, resulting in longer transit times. It also cited higher working capital requirements due to increased inventory levels and requests from customers for delayed payments. The company said the business is prioritising capital preservation in the current environment. All this is for information. This is not a buy/sell recommendation. Thank you, Technofunda24