Muthoot Finance’s Shares Fell Over 6% in Opening Deals
By – Ashwathy Nair
As investors reacted to the sudden demise of the chairman of the largest gold loan NBFC in the country, MG George Muthoot, shares of Muthoot Finance suffered a rapid decrease in value over 6 per cent in opening deals. The chairman of Muthoot Group passed away after falling from the fourth floor of his house on Saturday. The incident took place at around 9 pm on Friday in Delhi’s East of Kailash and after the accident, he was rushed to Fortis Escort Hospital where he was confirmed dead.
Responding to the news, the share price of Muthoot Finance dropped as much as 6.57 per cent in opening deals to hit a low of ₹ 1,205. There was a surge in turnover as 0.56 lakh shares changed hands over the counter compared to an average two-week volume of 0.82 lakh shares. On the other hand, BSE Sensex traded 499 points or 0.99 per cent higher at 50,904.
On the National Stock Exchange, the shares of Muthoot Finance traded at ₹1,294, falling 1.58 per cent, after a sharply lower opening at ₹1,283.
On 6th March, in an exchange filing, Muthoot Finance stated that “M G George Muthoot was a mentor and visionary leader who, over his long career, played a pivotal role in creating one of the country’s most trusted financial powerhouses.”
Under his guidance, Muthoot Finance experienced new heights of success and became a market leader in the gold lending industry. It was responsible for increasing the reach of the Muthoot Group beyond South India by extending its branch presence across North, East and West India and thereby transforming the company into a pan-India organization, the company said.
It added that “the sudden and unexpected death of M. G. George Muthoot will be an irreparable loss to the family, friends, organization, employees and all stakeholders. To the family of M G George, all directors as well as employees of the company convey deep sorrow, sympathy and condolences.”
Meanwhile, doctors at the AIIMS (All India Institute of Medical Sciences), Delhi, who headed the Muthoot group chair, stated that they are not ruling out any aspect, adding that since it is a case of falling from a height, it is considered “not a natural demise.”
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