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Poonawalla Fincorp shares tumble 5% to its lower circuit after MD steps down

12:39 PM Sep 17, 2021 | FPJ Web Desk

Shares of Poonawalla Fincorp continued to decline on Friday and further tumbled 5 per cent to its lowest trading limit after its Managing Director Abhay Bhutada stepped down from the company following Sebi action.

The stock declined 5 per cent to its lower circuit of Rs 163.55 on the BSE.

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At the NSE, it tumbled 4.97 per cent to Rs 163.35.

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Shares of Poonawalla Fincorp tumbled 5 per cent on Thursday also.

Bhutada has resigned from the board with effect from September 16, 2021, Poonawalla Fincorp said in a statement on Thursday.

Bhutada denies allegations, to take legal recourse

In a letter to the board of directors Bhutada denied all allegations, Moneycontrol said. "I have not shared any unpublished price sensitive information (UPSI) directly or indirectly to the entities mentioned in the order except the official discussion with entity no 2 who was working as an advisor for the Acquisition transaction. I have not received any kind of financial benefit directly or indirectly from the entities mentioned in the order. My transactions with the entities mentioned in the order are genuine business transaction and legitimate in nature including few of the past transaction and I am ready to provide evidence regarding the same to the respective authorities."

Bhutada further added that that he will take appropriate legal recourse, the report said.

Also Read: Poonawalla Fincorp MD barred from stock markets for insider trading in Magma Fincorp

Poonawalla Fincorp Group CEO to run operations

Poonawalla Fincorp Ltd Group CEO Vijay Deshwal will continue to run the operations of the firm, the statement added.

The Securities and Exchange Board of India (Sebi) on Wednesday barred Bhutada and seven other entities from the securities market for insider trading in the shares of the company.

The regulator also ordered impounding of wrongful gains worth over Rs 13 crore, through an interim order. In February 2021, Sebi's system generated insider trading alerts related to the company's shares.

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