Shares of Kalyan Jewellers Ltd skyrocketed 9% on Monday, 20 January, after Motilal Oswal Asset Management Company (MOAMC) issued a statement addressing the recent social media allegations.
MOAMC is a subsidiary of Motilal Oswal Financial Services, which is a brokerage firm.
The asset management company dismissed the rumours suggesting that its money managers were bribed to invest in Kalyan Jewellers by labelling the allegations as “baseless, malicious, and defamatory.”
The company, in a statement, added, “We categorically deny the baseless, malicious, and defamatory allegations circulating on social media against MOAMC and its officials. These baseless accusations are a deliberate attempt by individuals with vested interests to malign the good reputation that our firm and leadership have built over decades.”
Recent social media posts have claimed that officials at MOAMC may have been bribed to make significant investments in Kalyan Jewellers. Despite a strong denial from Kalyan Jewellers last week, these rumours have persisted, seemingly contributing to a 37% drop in the jeweller’s stock price over the past two weeks.
Kalyan Jewellers has long been a key holding in several Motilal Oswal Mutual Fund schemes.
During its recent earnings call on 14 January, Kalyan Jewellers’ management directly addressed the allegations. Executive Director Ramesh Kalyanaraman dismissed the bribery claims as “absurd” and clarified that no IT raids had occurred at the company’s premises. He emphasized, “We have always conducted our business and stakeholder interactions with the utmost integrity and transparency.”
Both Kalyan Jewellers and MOAMC have urged stakeholders to ignore the rumours and rely solely on credible information. MOAMC assured its investors, distributors, shareholders, and other stakeholders that the company upholds the highest standards of compliance and has full confidence in its systems, processes, and fund managers.
The company further stated that its daily operations remain unaffected and reiterated its commitment to prioritizing investor growth. MOAMC added, “MOAMC will take all necessary steps to protect its reputation and uphold the trust placed in us by our investors and the broader community.”
At 11:47 pm, the shares of Kalyan Jewellers were trading 7.63% higher at Rs 539.75 on NSE.
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