After Motilal Oswal AMC clarifies the "bribery" claims, the share price of Kalyan Jewellers rises by more than 7%.

On January 2, 2025, the price of Kalyan Jewellers' stock reached its highest point ever, at ₹794.60 per share. But since its peak, the stock has dropped 36.86%. Even though Kalyan Jewellers India denied reports of IT raids and paying a few fund managers, the company nonetheless fell.

After asset management Motilal Oswal AMC clarified its investments in the jewelry producer in response to rumors spreading on social media, Kalyan Jewellers' share price surged more than 7% on Monday. On the BSE, Kalyan Jewellers' stock rose up to 7.52% to a peak of ₹539.40 a share.

In a statement released on Sunday, Motilal Oswal Asset Management Company (AMC) refuted claims that its fund managers were engaged in a bribery scheme to buy Kalyan's stock.

"We vehemently refute the vile, vicious, and unfounded accusations against MOAMC and its leadership that are making the rounds on social media. The positive reputation that our company and its leadership have cultivated over the years is being intentionally tarnished by these unfounded charges, according to Motilal Oswal AMC.

People should not believe these "baseless and unethical attempts to spread misinformation," the asset management advised.

"We strongly advise all parties involved to rely on reliable and authentic sources of information. We guarantee all stakeholders, including investors, distributors, and shareholders, that we adhere to the strictest compliance guidelines and that we have complete trust in our fund managers, systems, and procedures," the statement read.

What are the allegations of bribery against Kalyan Jewellers?
Allegations that fund managers at Motilal Oswal AMC were implicated in misbehavior involving Kalyan Jewellers' shares recently swept social media. Additionally, there were rumors that the fund company had fired a few fund managers because of the issue.

In a January 14 earnings audio call, Kalyan Jewellers denied any IT raids had occurred on company property and called the bribery accusations "absurd."

"We have always conducted our businesses and interactions with all stakeholders with a very high level of integrity and transparency," said Ramesh Kalyanaraman, Executive Director of Kalyan Jewellers.

"No raids have taken place at any of our locations. That was only a rumor. As stated in our financial statement, the inventory level is subject to several audit levels. Over the past 18 months, we have paid off over ₹450 crore in debt. This is on top of the dividend payment of about ₹170 crore, Kalyanaraman stated.

The decline in Kalyan Jewellers' stock price
The share price of Kalyan Jewellers has dropped precipitously since the start of the year. Due to ongoing selling, the stock has dropped 20% in a single week and more than 35% so far this month.

On January 2, 2025, the price of Kalyan Jewellers' stock reached its highest point ever, at ₹794.60 per share. But since its peak, the stock has dropped 36.86%. Even though Kalyan Jewellers India denied reports of IT raids and paying a few fund managers, the company nonetheless fell.

Kalyan Jewellers' stock was up 4.21% at ₹522.75 per share on the BSE at 9:20 AM.