Hero MotoCorp shares tank 4% as Delhi Police files FIR against Pawan Munjal

Shares of Hero MotoCorp cracked about 3 per cent during the trading session on Monday after Delhi Police filed FIR against the company's managing director (MD) and CEO Pawan Munjal for alleged forgery. The complaint has been booked against other accused in the matter too.

Munjal has been in the news lately as Directorate of Revenue Intelligence (DRI) and Enforcement Directorate (ED) are already investigating and questioning Hero MotoCorp's CMD in connection with a Prevention of Money Laundering case, signalling a major escalation of investigation against him.

Following the FIR news, shares of Hero MotoCorp cracked 4 per cent to Rs 2925 on Monday, compared to its previous close at Rs 3,035.75 on Friday. The company was commanding a total market capitalization of Rs 58,500 crore. Shares of Hero Motocorp have gained about 20 per cent in the last six months.

In August this year, The Enforcement Directorate, conducted searches at his premises located in Delhi and Gurugram, and registered a case against the 69-year old automotive magnate under the Prevention of Money Laundering Act (PMLA) and seizeda ssets worth Rs 25 crore, including currencies, gold and diamond jewellery.

Munjal has been accused by the anti-money laundering agency for sending Rs 54 crore in foreign currency overseas during the years 2014-15 to 2018-19. Also, the billionaire businessman has been accused of taking Rs 40 crore foreign currency abroad by a close associate of Munjal.

Hero MotoCorp, which is ranked amongst the largest two-wheeler manufacturers, has not submitted a filing with exchanges as of writing this report. The company has established a global footprint, with a presence in more than countries across Asia, Africa, and South and Central America.

Also read: Zomato shares recover 135% from 52-week low in 2023; buy, sell, or hold?

Also read: Israel-Hamas war: Sell OMC shares; prefer Cyient DLM, says InCred Equities