Why Muthoot Finance shares fell over 6% today

Shares of Muthoot Finance plunged over 6 per cent in opening deals on Monday as investors reacted to sudden demise of MG George Muthoot, the chairman of the largest gold loan NBFC in the country. The Muthoot group chairman passed away on Saturday reportedly after falling from the fourth floor of his house. The incident occured in Delhi's East of Kailash at around 9 pm on Friday and he was rushed to Fortis Escort Hospital where he was declared dead.

Reacting to the news, Muthoot Finance share price declined as much as 6.57 per cent in opening deals to hit low of Rs 1,205. There was spurt in volume as 0.56 lakh shares changed hands over the counter as compared to two-week average volume of 0.82 lakh shares. In contrast, the BSE Sensex was trading 499 points 0r 0.99 per cent higher at 50,904.

On the National Stock Exchange, Muthoot Finance shares were trading at Rs 1,294, down 1.58 per cent, after opening sharply lower at Rs 1,283.  

In an exchange filing on March 6, Muthoot Finance said, "M G George Muthoot was the Mentor and Visionary leader who played pivotal leadership role through his long career in building one of the most trusted financial power house in the country."

Under his stewardship, Muthoot Finance saw new heights of growth and became the market leader in gold loan industry. He was responsible for scaling up the Muthoot Group's presence beyond South India by expanding its branch presence across North, East and West india and thereby transforming the company into a pan india organization, the company said.

"M G George Muthoot's sudden and unexpected demise will be an irreparable loss to the Company, employees, all stakeholders, family, and friends. All directors and employees of the company convey deep sympathy, sorrow and condolences to his family," it added.

Meanwhile, doctors at the All India Institute of Medical Sciences, Delhi, who conducted the postmortem of Muthoot group chairman, said they are not ruling out any aspect, adding that since it is a case of fall from a height, it is considered "not a natural death."

Meanwhile, doctors at the All India Institute of Medical Sciences, Delhi, who conducted the postmortem of Muthoot group chairman, said they are not ruling out any aspect, adding that since it is a case of fall from a height, it is considered "not a natural death."

Also read: Share Market Live Updates: Sensex surges 500 pts to 50,904, Nifty holds 15k levels; Muthoot Finance plunges 6%

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