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Shares of Kalyan Jewellers India surged more than 9% on January 20, reversing a three-day decline; Key points investors need to know
Kalyan Jewellers
Shares of Kalyan Jewellers India surged more than 9% on January 20, reversing a three-day decline, after Motilal Oswal AMC issued a statement refuting rumors surrounding its investments in the jewelry firm.
The asset management company strongly denied claims that its fund managers had been bribed to invest in Kalyan Jewellers, calling the allegations “baseless, malicious, and defamatory.” Motilal Oswal AMC emphasized, “We categorically deny the baseless, malicious, and defamatory accusations circulating on social media against MOAMC and its officials. These claims are a deliberate attempt by individuals with vested interests to tarnish the good reputation that our firm and leadership have built over decades.”
In response to the clarification, Kalyan Jewellers’ stock saw a sharp rise. At 9:56 AM, shares were trading at Rs 542.20 on the NSE.
The rumors circulating on social media had claimed that Motilal Oswal AMC’s fund managers were implicated in misconduct related to Kalyan Jewellers’ stock, with some speculating that the fund house had dismissed certain managers over the issue.
Kalyan Jewellers addressed these allegations during an earnings call on January 14, stating that no IT raids had occurred at its offices and dismissing the bribery claims as “absurd.”
Ramesh Kalyanaraman, Executive Director of Kalyan Jewellers, reiterated the company’s commitment to integrity, saying, “We have always conducted our business and interactions with all stakeholders with the highest level of integrity and transparency.” He further clarified, “There have been no raids at any of our premises. It was just a rumor. Our inventory levels, as stated in our financial report, undergo multiple levels of audit. We’ve repaid approximately Rs 450 crore in debt over the last 18 months, in addition to around Rs 170 crore in dividend payouts.”
Amid the rumors, Kalyan Jewellers’ stock had fallen by nearly 30% in January, following a peak of Rs 794.60 on January 2. The stock also saw high trading volumes during this decline.
