aditya birla: Market Movers: Why Aditya Birla Capital, ABSL AMC shares plunged as much as 8%

NEW DELHI: Shares of , which is the holding company for the group’s financial services businesses including mutual funds, plunged 5 percent after reports of mismanagement and corruption at the company.

The Morning Context in a report said that the company’s CEO, Ajay Srinivasan, was apparently sent packing recently due to an allegation by a whistleblower of insider trading and leadership in

which is the mutual fund arm and is also publicly traded.

The whistleblower letter was sent to the board and reportedly asked them to investigate A Balasubramanian, who is the CEO of Aditya Birla MF and CIO Mahesh Patil. The former is also the president of Amfi.

A spokesperson for Aditya Birla Capital said that these innuendos/accusations are without facts and we wish to emphatically deny them.

“The company received a complaint making certain allegations about Aditya Birla Sun Life AMC and its employees. In accordance with Aditya Birla Group policy, an independent committee was formed to investigate the allegations. The Committee found no merit in the allegations. There was no accusation against Ajay Srinivasan by said employee,” the person added.

The accusations, which came on the heels of a similar incident at Axis Mutual Fund, appear to have spooked investors on Dalal Street. Aditya Birla Sun Life AMC also sank nearly 8 percent on the day.

Revival on the cards?

On Monday, major auto parts company Bharat Forge reported a 9.3% rise in its consolidated net profit of Rs 231.86 crore in the fourth quarter ended March 2022, driven by higher revenue.

The company had posted a consolidated net profit of Rs 212.12 crore in the same period of the previous fiscal year, Bharat Forge said in a regulatory filing.

Shares of the company ended the day up more than 5 percent.

another big order

Amid all the volatility in its share price, the business purpose of

it’s still going strong, at least that’s what seems to be the case from the amount of orders it’s getting.

Tata Power Solar, a wholly-owned subsidiary of Tata Power, received an order for a 300 MW solar project worth INR 1,731 crore including sales tax.

. The project site, located in Rajasthan, will be developed under IREDA’s CPSU scheme.

The project will be completed within a period of 18 months, aims to reduce around 6,36,960 carbon emissions and is expected to generate approximately 750 million units a year. Cells and modules manufactured in India would be used in the project installation.

The stock rallied to end up 2% for the day.

Add Comment