Kalyan Jewellers jumps 9% as Motilal Oswal AMC denies social media claims

Shares of Kalyan Jewellers India jumped 9.3 per cent at Rs 548.65 per share on the BSE in Monday’s intraday trade after Motilal Oswal Asset Management Company (MOAMC) issued a statement addressing recent social media allegations. MOAMC is a subsidiary of the brokerage firm Motilal Oswal Financial Services.

 

The firm strongly denied the "baseless, malicious, and defamatory allegations" circulating online against MOAMC and its officials. Without naming any specific individuals, MOAMC said, "These unfounded accusations are a calculated attempt by vested interests to tarnish the reputation our organization and leadership have built over decades."

 

In recent weeks, social media posts have alleged that officials at MOAMC may have been bribed to make substantial investments in Kalyan Jewellers. Despite the jeweller's strong denial of these claims last week, the rumors have persisted. These allegations are believed to have contributed to a 37 per cent decline in Kalyan Jewellers' stock price over the past two weeks.  

 

Kalyan Jewellers has consistently been one of the prominent holdings in several Motilal Oswal Mutual Fund schemes.

 

MOAMC dismissed the claims as "baseless, malicious, and defamatory" in a statement issued on Sunday. This marks the second instance of denial by MOAMC, which had previously refuted similar rumors last Thursday, calling them "absolutely false and baseless."

 

During its recent earnings call on January 14, Kalyan Jewellers management addressed the allegations directly. Ramesh Kalyanaraman, Executive Director at Kalyan Jewellers, clarified that no IT raids had taken place at the company's premises and described the bribery allegations as "absurd." He added, "We have always conducted our business and stakeholder interactions with the utmost integrity and transparency."

 

Both Kalyan Jewellers and MOAMC have urged stakeholders to disregard the rumors and rely only on credible sources of information. MOAMC reassured its investors, distributors, shareholders, and other stakeholders, stating, "We adhere to the highest standards of compliance and maintain full faith in our systems, processes, and fund managers."

 

The company also affirmed that its daily operations remain unaffected and that it remains committed to its mission of prioritising investor growth. "MOAMC will take all necessary steps to protect its reputation and uphold the trust placed in us by our investors and the broader community," the statement concluded.

 

On the equities front, Kalyan Jewellers share price has outperformed the market, rising 2.9 per cent in the last six months, while gaining 51 per cent in the last one year. In comparison, the BSE Sensex has slipped 4.7 per cent in the last six months, while rising 7.5 per cent in the last one year. 

 

Kalyan Jewellers has a total market capitalisation of Rs 56,104.93 crore. Its shares are listed at a price to earnings multiple of 95.93 and at an earning per share of 5.67.

 

At 10:02 AM, the stock price of the company rose by 8.43 per cent at Rs 543.95 a piece on the BSE. By comparison, the BSE’s Sensex was up 0.21 per cent to 76,778.03 level.