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Investors of the MP Birla group listed companies Birla Corporation, Universal Cables, Vindhya Telelinks and Birla Cable have together lost close to ₹545 crore on Monday in market capitalisation as these stocks slumped between 4 and 8 per cent.
The value erosion happened due to the uncertainty that has prevailed on continuation of Harsh Vardhan Lodha as the Director on the board of Birla Corporation and Vindhay Telelinks following the Kolkata High Court order. The Court has asked for removal of Harsh Vardhan Lodha from the directorships and other positions in the trusts and societies of the MP Birla group of companies.
Value erosion
Investors lost about ₹445 crore of their wealth in Birla Corporation, while the loss was ₹48 crore in Vindhya Telelinks, and ₹37 crore and ₹5 crore in Universal Cables and Birla Cable respectively; shares of Birla Corp plunged 7.2 per cent at ₹669.35 on the BSE while Vindhya Telelinks slipped 4.6 per cent at ₹811.50 and Univesal Cables 6.5 per cent at ₹135.30. Birla Cable edged down 4 per cent at ₹52.10.
“We believe (Friday’s) judgment by itself will have no material impact on Harsh Lodha or any of the MP Bilra Group companies has the same would be challenged by Lodha,” said Kunal Shah, Equity Analyst, YES Securities.
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