Baseless, legally untenable: Sona hits back at Rani Kapur's claims

Sona Comstar refutes allegations by Rani Kapur as baseless and misleading, citing her lack of role in the company and defending its independent governance and shareholder interests

Sona BLW Precision Forgings Ltd (Sona Comstar) on Monday issued a detailed rebuttal to allegations made by Rani Kapur, mother of late chairman Sunjay Kapur, calling them “baseless” and “legally untenable”.

 

The company, which manufactures auto components, said Kapur has no locus standi in its affairs, and that any suggestion of coercion or consent being required from her is false.

 

In a letter to the board on Thursday, Kapur had claimed she was coerced into signing documents behind locked doors following her son’s sudden and “highly suspicious” death on June 12.

 

Kapur alleged she was being denied access to her accounts and had been left at the “mercy” of a select few for survival. She also claimed she had not nominated anyone to represent the Kapur family on the board and demanded the company defer its AGM, which was held as scheduled on Friday.

 

In a statement to BSE on Monday, the company clarified that Rani Kapur has had no role -- direct or indirect -- in the company since at least 2019.

 

“She is neither a shareholder, director, nor officer of the Company,” Sona Comstar said, adding that her claims of being coerced into signing documents are “completely baseless and legally untenable.”

 

The company also took strong exception to what it described as irresponsible statements and misinformation being circulated in the media.

 

“The continued dissemination of false narratives in the media to pursue personal legal agendas have resulted in erosion in shareholder’ value. With over 400,000 public shareholders, such actions are not only reckless but deeply harmful to the interests of the company. It is imperative that those responsible for this value destruction are held accountable,” it added. 

 

Sona Comstar also rejected the suggestion that it was a family-run or family-owned business.

 

“Sona Comstar is a publicly listed company with approximately 71.98 per cent of its shareholding held by institutional and public investors. The promoter entity holds a stake of 28.02 per cent and exercises no special rights or control,” the company stated.

 

“The assertion that the company is a family-run business is factually incorrect and misleading,” it added.

 

The company said that it was governed by a professional management team and an independent board. Since its IPO in 2021, the promoter entity, Aureus Investments Private Ltd, has held only one non-executive board seat. The current board comprises nine directors, including two executive directors with no affiliation to the Kapur family and six independent directors “with exemplary reputations and distinguished careers.”

 

Sona Comstar said that recent appointments to the board, including the re-appointment of Jeffrey Mark Overly as an independent director and appointment of Priya Sachdev Kapur, wife of late Sunjay Kapur, as a non-executive director, were fully compliant with all legal and governance norms.

 

“Both appointments would have passed even without any votes from the promoter entity,” the company said, noting they were ratified by 98.9 per cent and 99.4 per cent of shareholders, respectively.