Birla Corporation shares fall 5% after HC bans Harsh Vardhan from group cos

Birla Corporation share price fell over 5 percent intraday on September 21 after the Calcutta High Court restrained Harsh Vardhan Lodha from holding any position in MP Birla Group companies with immediate effect.

With this Lodha, who has fought for almost a decade to retain control of cement maker Birla Corp and the MP Birla group companies, will be removed with immediate effect from all company positions. The court’s ruling is a significant victory for the extended Birla family, which is contesting the legal validity of Priyamvada Birla’s Will, according to a Mint report.

The two sides have been locked in a battle for 18 years over the Will in which Priyamvada Birla bequeathed her estate and control of the now Rs 25,000 crore MP Birla empire to her Chartered Accountant RS Lodha and his second son Harsh Vardhan Lodha.

Lodha will also be removed as chairman of the group’s flagship company Birla Corp. and as a director on the boards of other MP Birla companies, including listed firms Vindhya Telelinks Ltd, Birla Cables Ltd and Universal Cables Ltd.

The stock was trading at Rs 687.00, down Rs 34.10, or 4.73 percent. It has touched an intraday high of Rs 703.95 and an intraday low of Rs 662.20.

According to Moneycontrol SWOT Analysis powered by Trendlyne, MFs have decreased their shareholding last quarter with declining revenue every quarter for the past two quarters.

However, Moneycontrol technical rating is very bullish with moving averages and technical indicators being bullish.