20 Jan , 2025 By : Debdeep Gupta
Shares of Kalyan Jewellers India skyrocketed over 9 percent on January 20, snapping a three-day losing streak after asset manager Motilal Oswal AMC started to clarify rumors about its investments in the jewelry firm.
The fund house dismissed rumors suggesting that its money managers were bribed to invest in Kalyan Jewellers, labeling the allegations as "baseless, malicious, and defamatory." “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,” Motilal Oswal AMC stated in a note.
Following the statement, shares of Kalyan Jewellers soared in trade today. At 09.56 am, shares of Kalyan Jewellers were trading at Rs 542.20 in the NSE.
Recently, social media was rife with allegations suggesting that fund managers at Motilal Oswal AMC were involved in misconduct surrounding Kalyan Jewellers’ shares, including speculations that the fund house had terminated a few managers over the issue.
In an earnings audio call on January 14, Kalyan Jewellers addressed the rumors, clarifying that no IT raids had occurred at its premises and dismissing the bribery allegations as “absurd.”
Ramesh Kalyanaraman, Executive Director of Kalyan Jewellers, said, “We have always conducted our businesses and interactions with all stakeholders with a very high level of integrity and transparency.”
“There have been no raids at any of our premises. It was just a rumor. Inventory level, as mentioned in our financial statement, goes through multiple levels of audit. We've repaid around Rs 450 crore debt over the last 18 months. This is in addition to around Rs 170 crore dividend payout,” Kalyanaraman said.
Caught amid these speculations, shares of Kalyan Jewellers plunged nearly 30 percent in January thus far. The relentless fall in the stock came after it hit a record high of Rs 794.60 on January 2. Trading volumes in the counter also remained high in the period of its downturn.
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