NEW DELHI: Shares of Aditya Birla Capital, which is the holding company for the group’s financial services businesses including mutual funds, tanked 5 per cent after reports of mismanagement and corruption at the company.
The Morning Context in a report said the company’s CEO Ajay Srinivasan was apparently sent packing recently due to a whistleblower allegation of insider trading and frontrunning at Aditya Birla Sun Life AMC, which is the mutual fund arm and is also listed on exchanges.
The whistleblower letter was sent to the board and reportedly asked them to investigate A Balasubramanian, who is the CEO of the Aditya Birla MF and the CIO Mahesh Patil. The former is also the chairman of Amfi.
An Aditya Birla Capital spokesperson said these insinuations/allegations are bereft of facts and we wish to emphatically deny them.
“The company received a complaint in which certain allegations were made about Aditya Birla Sun Life AMC and its employees. As per the Aditya Birla Group policy, an independent Committee was formed to investigate the allegations. The Committee did not find any merit in the allegations. There was no allegation whatsoever, made against Ajay Srinivasan, by the said employee,” the person added.
The allegations, coming on the heels of a similar incident at Axis Mutual Fund, seems to have scared investors on Dalal Street. Aditya Birla Sun Life AMC also tanked nearly 8 per cent during the day.
Revival on cards?
Auto components major Bharat Forge on Monday reported a 9.3 per cent increase in its consolidated net profit at 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 preceding fiscal, Bharat Forge said in a regulatory filing.
Shares of the company ended the day up over 5 per cent.
Another big order
Amid all the volatility in its stock price, the business end of Tata Power continues to be strong--at least that is what seems to be the case from the number of orders it is getting.
Tata Power Solar, a wholly-owned subsidiary of Tata Power, bagged an order of 300MW Solar project worth INR 1,731 crore, inclusive of tax from NHPC. The project site, located in Rajasthan, will be developed under the CPSU scheme of IREDA.
The project will be completed within 18 months’ time period, aims to reduce around 6,36,960 carbon emissions, and is expected to generate approximately 750 million units annually. Cells and modules made in India would be used in the project installation.
The stock recovered to end up 2% during the day.
