Tue Jan 21 20:10:00 IST 2025: ## Kalyan Jewellers Stock Plunges Amidst Denials of IT Raids and Bribery Allegations
**MUMBAI, INDIA – January 22, 2025** – Shares of Kalyan Jewellers India Ltd. plummeted 8.27% on Tuesday, closing at Rs 487.25, marking a 38.67% drop from its recent high of Rs 794.60. The decline follows a single-day trading halt and comes despite the company’s vehement denials of Income Tax (IT) raids and allegations of bribing fund managers.
Promoters Ramesh Trikkur Kalyanaraman and Seetharam Trikkur Kalyanaraman increased their pledged shareholdings by 1.65% and 1.85% respectively, a common practice to secure loans. This move, however, further fueled investor anxieties.
Executive Director Ramesh Kalyanaraman dismissed the allegations as “very absurd,” stating that the company operates with “a very high level of integrity and transparency.” He confirmed no IT raids occurred and reiterated that inventory levels undergo multiple audits. He also highlighted the company’s debt repayment of approximately Rs 450 crore over the last 18 months, in addition to a Rs 170 crore dividend payout.
Kalyan Jewellers also denied rumors of purchasing an aircraft, stating they only possess a helicopter with no plans to sell it.
Despite the company’s reassurances, at least four analysts – including Raghvendra Singh (market expert), Ravi Singh (Religare Broking), Kushal Gandhi (StoxBox), and Osho Krishan (Angel Broking) – advised investors to avoid the stock in the near term, recommending existing investors consider selling their shares. Promoters currently hold a 62.85% stake in the company. The company is scheduled to release its Q3 FY25 results on January 30th.
First Piper 