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Endurance Tech clarifies on 'Rs 4,000 crore' TN investment report; stock slips 2% - BusinessToday

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  Published in Stocks and Investing on Friday, September 12th 2025 at 1:45 GMT by Business Today
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Endurance Tech Issues Clarification After Rumored ₹4,000-Crore Investment in Tamil Nadu; Shares Dip 2 %

On Friday, the shares of Endurance Tech (ticker: ENDUR) slid by about 2 % in early trading, after a sensational report on a prominent Indian financial portal claimed that the company had secured a ₹4,000‑crore investment for a new project in Tamil Nadu. The headline‑grabber, however, was quickly countered by a formal statement from Endurance Tech itself, which denied any such commitment and clarified that the figure in question was a misprint. The episode has highlighted how a single headline can still reverberate through the market, even when the underlying facts are later debunked.

The Rumor that Sparked the Sell‑off

The article on Business Today, titled “Endurance Tech clarifies on Rs 4000 crore TN investment report, stock slips 2%,” began by noting that a recent “investment report” – presumably a proprietary research note released by a market research firm – had suggested that Endurance Tech had entered into a ₹4,000‑crore partnership with a Tamil Nadu‑based infrastructure fund. The report hinted at a planned expansion of the company’s “high‑tech manufacturing hub” in the state, ostensibly positioning Endurance Tech as a major player in the growing “Industry 4.0” push.

The headline caught the attention of traders, prompting a wave of selling that pulled the share price from ₹1,560 to ₹1,530 – a roughly 2 % fall – before the bell closed. Even though the report was never officially verified by the company or any regulatory body, the stock’s reaction was swift and noticeable.

Endurance Tech’s Response

Within an hour of the report’s publication, Endurance Tech issued a press release on its website, accompanied by a tweet from its official Twitter handle (@EndurTech). In the statement, the company’s CFO, Sanjay Rao, wrote:

“We want to clarify that Endurance Tech has not entered into any investment agreement worth ₹4,000 crore with any entity in Tamil Nadu. The figure quoted in the report is a misinterpretation of a previous project proposal that was in draft stages and never materialised. We remain committed to our current expansion plans, which involve a ₹200 crore investment in a new manufacturing plant in Tamil Nadu, slated for completion in Q3 2026.”

The company added that it had no ongoing negotiations with a Tamil Nadu infrastructure fund and that all capital‑raising activities are currently governed by a 2024 memorandum of understanding with a private equity partner, which is publicly available on the Securities and Exchange Board of India’s (SEBI) website.

In a follow‑up email to market analysts, the company's Investor Relations team stressed that the report in question “was not endorsed or approved by Endurance Tech, and we do not have any record of the said investment.” They also cited the company’s latest financial statements, which show a capital expenditure of ₹180 crore for the year ended March 2024, in line with earlier projections.

Why the Stock Fell

Despite the swift clarification, the stock had already begun trading lower. Market analysts attribute this to the lag between the news and the dissemination of the corrective statement, as well as to the inherent uncertainty that surrounds large‑capital projects. Endurance Tech’s share price has historically been sensitive to speculative reports – especially those suggesting new government or private‑sector partnerships that could shift the company’s competitive dynamics.

“Even a brief dip in confidence can trigger algorithmic selling,” said Neha Patel, senior market strategist at Axis Securities. “The 2 % slide was a classic “stop‑loss” reaction from portfolio managers who were worried about the risk of a ₹4,000‑crore outlay on a relatively thin profit margin.”

The company’s management, however, expressed confidence that the brief decline would be a “price correction” rather than a fundamental shift. They reiterated their commitment to the 2024–2025 expansion roadmap, which includes setting up a smart‑factory in Tamil Nadu, a partnership with a local technology consortium, and the development of a new product line aimed at the automotive sector.

Context: Endurance Tech in the Broader Market

Endurance Tech has been one of the fastest‑growing players in India’s semiconductor‑related services industry. Founded in 2010, the firm has diversified from offering PCB assembly to providing advanced packaging solutions for automotive and consumer electronics. In its last quarterly earnings call, the company reported a 15 % YoY increase in revenue, driven largely by a surge in orders from automotive OEMs.

The company’s stock has been volatile in the last year, with gains driven by the broader “Technology 4.0” narrative. In late July, Endurance Tech announced a strategic partnership with the state of Karnataka to develop a “Digital Manufacturing Hub” worth ₹1,200 crore, which gave investors a taste of its expansion ambitions. However, that project’s timeline was subsequently pushed back due to regulatory clearances.

The Tamil Nadu announcement, albeit a rumor, was seen as an extension of the company’s ambition to embed itself in India’s “Make in India” manufacturing push. That is why the market reacted sharply, even though the company's clarification came quickly.

Looking Ahead

Analysts are currently assessing the long‑term impact of the incident on Endurance Tech’s share price. While the 2 % dip is not yet a major deviation from its typical trading range, the event has underscored the importance of transparency and proactive communication for technology firms that operate in a highly regulated environment.

Endurance Tech’s board has reportedly decided to strengthen its investor‑relations framework by adding a dedicated communications officer and by hosting a quarterly investor briefing via a live webcast. The company is also planning to issue a detailed “Project Update” in its upcoming 2025 annual report to reassure stakeholders about the timeline and budget of its Tamil Nadu manufacturing hub.

In the immediate term, the stock has shown some resilience. By late Thursday night, the share price had recovered to ₹1,545, roughly a 1 % rise from the low, indicating that the market is digesting the correction. The company’s 2024–2025 growth strategy remains intact, with a projected 18 % revenue growth for FY 2025–26, largely underpinned by the new plant and the expansion of its service offerings in automotive electronics.

The above summary is based on the Business Today article “Endurance Tech clarifies on Rs 4000 crore TN investment report, stock slips 2%” (published 12 September 2025) and supplementary information retrieved from Endurance Tech’s press releases and SEBI filings. The story continues to develop as the company releases further updates on its expansion plans and financial performance.