Kalyan Jewellers share price jumped over 7% on Monday after asset manager Motilal Oswal AMC issued a clarification on its investments in the jewellery maker, responding to the rumours circulating in the social media. Kalyan Jewellers shares surged as much as 7.52% to a high of ₹539.40 apiece on the BSE.
Motilal Oswal Asset Management Company (AMC), in a statement on Sunday, denied the allegations over its fund managers being involved in a bribery scheme to stock up on the shares of Kalyan Jewellers India, calling them “baseless, malicious, and defamatory allegations”.
“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 said.
The asset manager urged people not to believe these “baseless and unethical attempts to spread misinformation.”
“We urge all stakeholders to rely on credible and verified sources of information. We reassure our Investors, Distributors, Shareholders and all other stakeholders that we follow highest level of compliance standards and we have full faith in our systems, processes and fund managers,” the statement said.
What are Kalyan Jewellers Bribery Allegations?
Recently, social media was abuzz with allegations claiming that fund managers at Motilal Oswal AMC were involved in misconduct related to Kalyan Jewellers’ shares. It was also speculated that the fund house had dismissed a couple of fund managers over the matter.
During an earnings audio call released on January 14, Kalyan Jewellers clarified that no IT raids had taken place at its premises and dismissed the bribery allegations as “absurd.”
Ramesh Kalyanaraman, Executive Director of Kalyan Jewellers, stated, “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 rumour. Inventory level, as mentioned in our financial statement, goes through multiple levels of audit. We’ve repaid around ₹450 crore debt over the last 18 months. This is in addition to around ₹170 crore dividend payout,” Kalyanaraman said.
Kalyan Jewellers Stock Price Fall
Kalyan Jewellers share price has seen a sharp downfall since the beginning of this year. The stock has plunged 20% in one week and more than 35% this month so far amid persistent selling.
Kalyan Jewellers stock price hit an all-time high of ₹794.60 apiece on January 2, 2025. However, the stock has corrected 36.86% from the high. The fall comes despite Kalyan Jewellers India denying talks of IT raids and bribing a few fund managers.
