Shares of Birla Corporation fell as much as 8.16 per cent on Monday as the Calcutta High Court directed the removal of its Chairman Harsh Vardhan Lodha.
On Friday, the high court restrained Lodha from holding any office in MP Birla group entities. Birla is the Chairman of several MP BirlaGroup companies including Birla Corp.
Its shares touched an intra-day low of Rs 662.20 per share, with a drop of 8.16 per cent earlier in the day.
Around 2.p.m., it was trading at Rs 678.95, lower by Rs 42.15 or 5.85 per cent from the previous close.
According to market experts, although the order is likely to be challenged, it creates uncertainty among investors about the company’s management.
In a regulatory filing on Friday, Birla Corp said: “A Single Bench of the High Court at Calcutta vide its order dated 18th September, 2020 in a probate proceeding to which the Company is not a party has, inter-alia, restrained Harsh V. Lodha, Non-Executive Director and Chairman of the Company from holding any office in our company.”
It further said that the company is in the process of reviewing the said order of the High Court.