The shares of mobile value-added services provider OnMobile Global on Thursday fell by 17 per cent to Rs 33.25 on reports by a television channel that the company’s board had initiated probe against its chief executive Arvind Rao for alleged misappropriation of funds, a charge the company denied strongly.
In a late evening statement, OnMobile termed the reports baseless and devoid of factual accuracy.
“Arvind Rao is not being investigated by the board for any misappropriation of funds,” it said. “We assure our stakeholders that OnMobile is a professionally-managed and board-governed company, committed to following the highest standards of corporate governance to maximize stakeholder value.”
Earlier this month, OnMobile had informed the BSE that Rao would focus on international growth and market strategy, while an operations committee of the board comprising chairman H H Haight and audit committee chairman Naresh Malhotra would oversee the affairs of the company.