ICRA tumbles after sending MD on leave amid regulatory concerns

ICRA fell 5.39% to Rs 3,045 at 11:48 IST on BSE after the company sent its managing director and group CEO Naresh Takkar on leave amid an anonymous complaint sent by the market regulator.

The announcement was made after market hours yesterday, 1 July 2019.

Meanwhile, S&P BSE Sensex was down 130.92 points or 0.33% at 39,555.58.

On BSE, 301 shares were traded in ICRA counter, compared to a 2-week average of 60 shares. The share price hit an intraday high of Rs 3,077 and an intraday low of Rs 3,012. It hit a 52-week high of Rs 4,000 on 9 August 2018 and a 52-week low of Rs 2,833 on 6 March 2019.

ICRA has decided, pending completion of the examination of the concerns raised in the anonymous representation that was forwarded to the company by the Securities and Exchange Board of India (Sebi), to place Naresh Takkar, managing director (MD) and chief executive officer (CEO) on leave.

The company has decided to appoint Vipul Agarwal, as the interim chief operating officer (COO), apart from his role as group chief financial officer (CFO). Agarwal will be responsible for handling ICRA ratings and non-ratings businesses. The senior management of ICRA and its group entities, will report to him. During Naresh Takkar's period of leave, Vipul Agarwal will report to the board of directors.

Media reports suggested that an anonymous complaint has alleged that there were lapses when ICRA assigned a high rating of AAA to IL&FS. Last September, IL&FS defaulted on its debt payments, triggering a liquidity crisis in the financial market.

On a consolidated basis, ICRA's net profit fell 5.73% to Rs 25.85 crore on 1.43% increase in net sales to Rs 83.65 crore in Q4 March 2019 over Q4 March 2018.

ICRA is an independent credit rating agency.

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