Kalyan Jewellers Share Price Plummets

Kalyan Jewellers' stock price has been on a downward spiral, losing nearly two-fifths of its value since its record high, currently trading at ₹488.35 per share. The latest blow came after the company's promoters pledged an additional 5.79% of their shares, taking the total promoter pledge to 25.87%, in order to comply with a loan covenant.

The news of the additional pledge further rattled the market, despite the management's assurance that it was not a response to market conditions or any issues with the company. This development comes on the heels of rumors of a tax raid and bribes paid to a fund manager to inflate the stock, which the company's management has vehemently denied. The futures and options trading ban on Kalyan Jewellers will continue on Wednesday due to a high client position limit, adding to the uncertainty surrounding the stock.

Motilal Oswal Asset Management Company (MOAMC) has also been embroiled in the controversy, with accusations on social media claiming that its money managers were bribed to invest in Kalyan Jewellers. The company has strongly denied these allegations, calling them "baseless, malicious, and defamatory" and stating that they are a deliberate attempt to damage its reputation. MOAMC has assured investors that it will not tolerate any unethical practices and will take necessary measures to protect its reputation.

As the situation continues to unfold, investors remain cautious, and the stock price is likely to remain volatile in the short term. The company's management and stakeholders will be closely watched as they navigate this challenging period and work to restore investor confidence.