OnMobile Global has tanked over 9% to Rs 30.20, its new low on the Bombay Stock Exchange, despite the company denying reports of probe order against company's promoter and chief executive officer (CEO) Arvind Rao.
The stock has tanked 25% in past two days from Rs 40.05 on February 27, on reports that the board has appointed auditors KPMG to probe against its promoter and chief executive officer (CEO) Arvind Rao for alleged misappropriation of funds.
However, in a press release the company said: “Arvind Rao is not being investigated by the board for any misappropriation of funds. All appointments of external consultants by OnMobile over the past year have been pursuant to the ‘OnMobile 2020’ strategy announced last year, and the external consultants have been engaged to review, rework and strengthen the company’s corporate governance policies, including internal control mechanisms, procurement-to-payment processes, risk management framework, and succession planning.”
As many as a combined 23.56 million shares representing a 40% of its free-float equity have changed hands on the counter so far on the NSE and BSE.
