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UPL share rises 4% as firm denies allegations about financial fraud

UPL stock has risen 1.7% in one month, although, fell 20% in one year and 24% since the beginning of this year

twitter-logoBusinessToday.In | December 11, 2020 | Updated 14:23 IST
UPL share rises 4% as firm denies allegations about financial fraud
UPL share is trading higher than 20 and 200-day moving averages but lower than 5, 50 and 100-day moving averages

UPL shares gained over 4% in Friday's early session after the company denied that the whistleblower was a member of the board against what was reported in a news article yesterday.

The agrochemicals firm's management also clarified that these allegations were discussed and investigated by the Audit Committee and the Board in 2017 and 2018. "An identical whistleblower complaint was received by the audit committee of UPL on June 2, 2017," the company said in a BSE filing.

The stock of UPL opened 3.3% higher today at Rs 452.90 and hit an intraday high of Rs 456.40, rising 4.09%. It touched an intraday low of Rs 441.25, against the previous close of Rs 438.45 on BSE.

UPL share is trading higher than 20 and 200-day moving averages but lower than 5, 50 and 100-day moving averages. The stock has risen 1.7% in one month, although, fell 20% in one year and 24% since the beginning of this year.

Market capitalisation of the firm rose to Rs 33,885.42 crore. FIIs have reduced holdings from 40.56% to 37.15% in the September quarter. Mutual funds have raised holdings from 4.54% to 5.2% in the September quarter. However, promoter holding remained unchanged at 27.88% as on September 2020 quarter.

The stock fell over 14% intraday on Thursday's session after an Economic Times report said that a whistleblower claimed promoters of the company had siphoned off money.

UPL's clarification statement said," The Whistle Blower Committee, which comprised only independent directors, was constituted by the Audit Committee to investigate the allegations and all the contents of the complaint were fully disclosed. It undertook a detailed review, including each related party transaction (RPT), with the help of an independent law firm, and had concluded two and half years back that those transactions were at arm's length and in compliance with applicable laws. Thereafter, the complainant was duly informed about the findings of the Audit Committee and the matter was closed."

"It appears that the same whistleblower, motivated by malafide intentions,  has approached the media raising the same issue again. UPL confirms that all transactions in question were on an arms-length basis and that there has been no siphoning of funds, as alleged in the news article, " the filing added.

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