Pursuits
Welspun Shares Slide a Third Day as Bed Sheets Probe Widens
- J.C. Penny will review products from Welspun, retailer says
- Stock slumps by limit and is worst performer in BSE 200 index
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Welspun India Ltd. shares tumbled by the daily limit for a third day as the controversy over the manufacturer passing off cheaper bed sheets as premium Egyptian cotton widened, with customers Wal-Mart Stores Inc. and J.C. Penney Co. now reviewing items to verify product claims.
Shares dropped 10 percent Wednesday to a low of 59.30 rupees in Mumbai. The company has lost as as much as 43 percent of its market value this week, the worst performance among India’s top 200 companies. J.C. Penney, the manufacturer’s fifth-biggest customer, said the company is reviewing its Welspun products. It’s too early to determine what actions the retailer might take, spokeswoman Daphne Avila said in an e-mail Tuesday.