Kalyan Jewellers Shares Surge 9% After Motilal Oswal AMC Denies Bribery Allegations
Shares of Kalyan Jewellers India rebounded sharply, climbing over 9% on January 20, following three days of steep declines. The recovery came after Motilal Oswal Asset Management Company (AMC) issued a strong clarification addressing baseless rumors circulating on social media about its investment in the jewellery firm.
Motilal Oswal AMC Clears the Air
The fund house dismissed allegations that its money managers were bribed to invest in Kalyan Jewellers, calling the claims “baseless, malicious, and defamatory.” In an official statement, Motilal Oswal AMC said:
“We categorically deny the baseless, malicious, and defamatory allegations circulating on social media against MOAMC and its officials. These baseless accusations are a deliberate attempt by individuals with vested interests to malign the good reputation that our firm and leadership have built over decades.”
The clarification brought relief to investors, driving up Kalyan Jewellers’ stock. By 9:56 AM, the shares were trading at Rs 542.20 on the NSE, marking a significant comeback after the recent slump.
What Led to the Speculation?
Social media was rife with claims suggesting that fund managers at Motilal Oswal AMC were involved in misconduct related to Kalyan Jewellers’ shares. The rumors even alleged that the fund house had fired certain managers over the issue.
Adding fuel to the fire, there were also baseless reports of IT raids at Kalyan Jewellers’ premises. However, the company’s management addressed these allegations during an earnings call on January 14, firmly denying all claims.
Kalyan Jewellers Responds
Ramesh Kalyanaraman, Executive Director of Kalyan Jewellers, reiterated the company’s commitment to integrity and transparency. He clarified:
“There have been no raids at any of our premises. It was just a rumor. Inventory levels, as mentioned in our financial statement, go through multiple levels of audit. We’ve repaid around Rs 450 crore debt over the last 18 months. This is in addition to around Rs 170 crore dividend payout.”
The company emphasized its strong financial position and operational transparency, countering the misinformation that had impacted its stock.
Recent Stock Performance
Despite today’s sharp recovery, Kalyan Jewellers shares have faced a rough patch in January, losing nearly 30% of their value. This drop followed the stock’s record high of Rs 794.60 on January 2. High trading volumes during the downturn suggested significant market activity amid the uncertainty.
About Kalyan Jewellers
Founded in 1993, Kalyan Jewellers is one of India’s largest and most trusted jewellery brands. Headquartered in Thrissur, Kerala, the company operates a wide network of over 150 showrooms across India and the Middle East.
Kalyan is known for its vast portfolio of gold, diamond, and gemstone jewellery, catering to a diverse range of customers. Its transparent pricing policy, hallmark assurance, and focus on quality have made it a household name in the jewellery industry.
The company also benefits from strong brand endorsements by celebrities like Amitabh Bachchan and regional stars, which have helped it solidify its position in the competitive market.
The Road Ahead
Kalyan Jewellers’ strong fundamentals, combined with its proactive approach to addressing rumors, reflect a resilient organization. While recent events caused some turbulence, the company’s recovery in stock prices signals renewed investor confidence.
As it continues to expand its market presence and repay debt, Kalyan Jewellers remains a prominent player in India’s booming jewellery industry. Investors will now be watching closely to see if the company can maintain this positive momentum.
