Shares of chemicals firm Hikal Ltd. declined as much as 7 percent on Monday after the company received an order from the Gujarat Pollution Control Board to cease operations of its plant in the Bharuch district of the state for alleged violation of environmental norms.

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The company informed stock exchanges that it has recently received an order dated July 21 from the Gujarat Pollution Control Board (GPCB) directing it to cease operations of its plant at GIDC Panoli, in Bharuch, within 15 days from the order date.

Hikal received the order on July 22, which was issued in light of an alleged violation reported to have occurred in 2021. The order is related to alleged violations of certain provisions of Environment (Protection) Act, 1986.

Financial impact of the order is not ascertainable at this point, Hikal said. However, the company mentioned that it is taking immediate and appropriate measures to address the concerns raised by the regulatory authorities.

The company is also working with the GPCB to understand the reasons behind the direction and to seek a resolution in a transparent manner.

“We firmly believe that the closure direction is subject to reconsideration, and we have expressed our stance on the matter to the relevant authorities. Our commitment to environmental responsibility remains unwavering,” Hikal stated.

Hikal is engaged in the manufacturing of various chemical intermediates, specialty chemicals, active pharma ingredients and contract research activities.

Shares of Hikal are trading 6 percent lower at Rs 284.50. The stock has declined nearly 30 percent on a year-to-date basis.