Kalyan Jewellers is glitering this morning. The stock is up 9.5% intra-day after clocking nearly 37% losses YTD. In fact, Kalyan Jewellers shares fell in 4 out of 5 trading sessions last week and have wiped out more than 30% of investors’ wealth in the past month. This was after yielding over 500% returns in the last two years. However, it is a bright morning today and that’s on the back of the clarification that Motilal Oswal issued last evening.
Motilal Oswal clarifies
In a statement, the brokerage firm Motilal Oswal clarified the rumours circulating on social media regarding its investments in Kalyan Jewellers. The claims indicated that fund managers at Motilal Oswal AMC were allegedly offered bribes to increase their investments in the jewellery company. In a statement released on January 19, the AMC called the claims “baseless, malicious, and defamatory.” “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,” it read.
Also Read‘Baseless and defamatory’: Motilal Oswal refutes bribery allegations surrounding Kalyan Jewellers investment F&O Ban
The bourses banned the trading of fresh futures and options contracts for the stock of Kalyan Jewellers after traders’ positions approached the maximum allowed limit for these contracts. On January 15, the open interest (OI) for stock futures and option contracts reached 72.7 million shares, accounting for 95% of the overall position limit of 76.5 million shares set by the NSE and BSE.
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The company’s share price corrected despite India business recording revenue growth of around 41% during Q3 FY25 against Q3 FY24, which was led by a “very strong festive and wedding demand” across both gold and studded categories. Also, the like-for-like sales grew by almost 24% during the same time frame.
The company is yet to announce its financial results for the quarter ending December 31, 2024. It will report its Q3 FY25 earnings on January 30, 2025, as per the BSE results calendar.
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