Mumbai: Shares of Birla Corporation fell as much as 8 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 Birla Group companies including Birla Corp.
At the closing of the market, its shares touched 660.10, with a drop of 8.19 per cent.
According to market experts, although the order is likely to be challenged, it creates uncertainty among investors about the company's management.
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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.
(IANS Report)
