MRF shares hit record high after issuing clarification regarding 'illegal' strike at its Tiruvottiyur plant

Shares of MRF Ltd. hit their all-time high on Tuesday, September 23, after the company issued a clarification to the stock exchanges with regards to a news report that stated a strike has disrupted production at its Tiruvottiyur plant in north Chennai.

"The operations of the factory are being partly continued with the help of the workmen who are not part of the strike. The company is taking necessary steps to restore normalcy at the earliest," the company said.

MRF said that some of its workmen at the plant are on an illegal strike with regard to payment of annual insurance premium as advance and are opposing the hiring of trainees under the National Apprentice Promotion Scheme (NAPS), Prime Minister's Internship Scheme (PMIS) and the Naan Mudhalvan Scheme.

The Tiruvottiyur facility is among the 10 factories MRF has across India. It reiterated that the strike is illegal.

MRF also said that the impact of the strike does not exceed the financial thresholds for reporting adopted by the company under Regulation 30 of the SEBII[Listing Obligations and Disclosure Requirements] Regulations, 2015. Hence, it is not required to be disclosed under the regulation, it said.

MRF added that it would keep the stock exchanges informed of material developments, if any, regarding the matter.

MRF shares gained nearly 1.79% to hit a fresh record high of ₹1,55,600 apiece. The stock was trading 1.77% up at ₹1,55,555 apiece around 12.35 pm. It has gained 6% in the past month and 36.5% in the last six months.

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