Motilal Oswal Rejects Bribery Claims: Kalyan Jewellers Stock Surges 9% on January 20

Kalyan Jewellers' stock surged over 9% on January 20, rebounding from a three-day decline after Motilal Oswal AMC denied rumors about its investments in the jewelry firm. The asset management company issued a statement refuting allegations that its fund managers were bribed to invest in Kalyan Jewellers, calling the claims "baseless, malicious, and defamatory." It emphasized that the rumors were a deliberate attempt to tarnish its reputation.

Following the clarification, Kalyan Jewellers' shares saw a sharp rise, trading at ₹542.20 on the NSE at 9:56 AM. Social media rumors had alleged that Motilal Oswal AMC’s fund managers engaged in misconduct related to Kalyan Jewellers' stock, with some even claiming that certain managers had been dismissed over the issue.

Kalyan Jewellers addressed the rumors during an earnings call on January 14, dismissing the bribery claims as "absurd" and clarifying that no IT raids had occurred at their offices. Ramesh Kalyanaraman, Executive Director of Kalyan Jewellers, reaffirmed the company’s commitment to transparency and integrity, stating, “We have always conducted our business with the highest level of integrity and transparency.” He also highlighted that the company’s inventory levels were audited and that ₹450 crore in debt had been repaid over the past 18 months, alongside ₹170 crore in dividend payments.

Despite the clarification, Kalyan Jewellers' stock had fallen nearly 30% in January after peaking at ₹794.60 on January 2, with high trading volumes contributing to the decline.