Poonawalla Fincorp hits 5% lower circuit for second day as MD resigns

Shares of Poonawalla Fincorp (formerly Magma Fincorp) were locked in the lower circuit for the second straight day, down 5 per cent at Rs 163.55 on the BSE on Friday, after resignation of Abhay Bhutada, managing director (MD) of the company. The stock of the non-banking finance company (NBFC) was down 10 per cent in the past two trading days. It had hit a 52-week high of Rs 199.65 on August 18, 2021.

Till 10:16 am, a combined 554,726 equity shares of the company had changed hands and there were pending sell orders for 3.27 million equity shares on the NSE and BSE, the data shows. In comparison, the S&P BSE Sensex was up 0.82 per cent at 59,626 points. Currently, Poonawalla Fincorp is trading under the T group on the BSE. In the T2T segment, each trade has to result in delivery and no intra-day netting of positions is allowed.

The company in an exchange filing on Thursday said: We hereby inform you that Mr Abhay Bhutada, Managing Director of the Company has resigned from the Board of the Company with immediate effect from 16th September 2021, and the Board of Directors of the Company has accepted Mr Abhay Bhutada’s resignation. Consequently, Mr Abhay Bhutada ceases to be a Director and Key Managerial Personnel of the Company.

The Securities and Exchange Board of India (Sebi) on Wednesday barred Abhay Bhutada the MD and CEO of Poonawalla Fincorp and seven others from accessing the securities market for allegedly insider trading in shares of the company.

Sebi’s surveillance alert system detected suspicious trading patterns in the shares of Magma Fincorp ahead of the acquisition of a controlling stake by Adar Poonawalla-led Rising Sun Holding (RSHPL) in February 2021, the Business Standard reported. CLICK HERE FOR FULL REPORT