Kaynes Tech stock ends lower, Motilal Oswal rebukes online criticism over stake sale

November 18 marked the conclusion of the one-and-a-half-year and longer lock-in duration for shareholders Kaynes, which went public in 2022. As a result, around 11.6 million shares are now available for trading with. According to Nuvama Alternative and Quantitative Research, the freed-up shares make up 20% of the company’s outstanding equity.

Without directly addressing Garg’s tweet, Oswal put forward a strong message, defending the company’s integrity. “Through misuse of social media handles, baseless rumours are being spread about the research and fund management of the Motilal Oswal Group. I want to state unequivocally that these allegations are rubbish, false and completely unjustified. The ill-informed people are just creating false information about us, many of so called experts don't even know how the markets work. Further, there are no personal transactions in any proprietary accounts.” The stock price of Kaynes Technology closed at Rs 5,876, over 1.5% lower amid some online chatter on X around what was perceived as a contradictory approach by the buy and sell sides of Motilal Oswal Financial Services.

Motilal Oswal, co-founder of the Motilal Oswal Group, in a detailed tweet on X (formerly Twitter), issued a strong rebuttal against social media chatter regarding the sharp decline in the share price of Kaynes on November 18, following a block sale by Motilal Oswal AMC. Oswal clarified that their Institutional Equities research (sell-side) and AMC investment entities/ teams (buy-side) operate independently. 

Kaynes shares fell 5% on November 18 to ₹5,890 on the NSE from ₹6,200 on November 18.

Oswal commented after an X user, Ashish Garg (@Ashishkafunda), pointed out that the buy side sold around 8.17 lakh shares worth ₹490 crore right after the lock-period ended. Two weeks ago, their sell-side released a report with a “Buy” rating and an ₹8200 target on Kaynes, with Garg citing it as an “irony”. 

“Yesterday’s sudden fall in Kaynes Tech happened because Motilal Oswal sold 8.17 lakh shares ( ₹489 Cr ) at ₹6,000 each, immediately after the lock-in period ended. The irony? Just two weeks ago, the same Motilal Oswal released a report with a “Buy” rating and an ₹8200 target on Kaynes,” Garg’s tweet read. 

November 18 marked the conclusion of the one-and-a-half-year and longer lock-in duration for shareholders Kaynes, which went public in 2022. As a result, around 11.6 million shares are now available for trading with. According to Nuvama Alternative and Quantitative Research, the freed-up shares make up 20% of the company’s outstanding equity.

Without directly addressing Garg’s tweet, Oswal put forward a strong message, defending the company’s integrity. “Through misuse of social media handles, baseless rumours are being spread about the research and fund management of the Motilal Oswal Group. I want to state unequivocally that these allegations are rubbish, false and completely unjustified. The ill-informed people are just creating false information about us, many of so called experts don't even know how the markets work. Further, there are no personal transactions in any proprietary accounts.” 

Oswal highlighted how the group has built its reputation on trust, ethics, and the highest standards of integrity over the past four decades. “Our fund management business has also operated for more than twenty years with a transparent and disciplined process that always puts investors’ interests first.”

Oswal also elaborated on the functioning of the two sides of the group, stating that the Institutional Equities research provides “unbiased market insights”, and the buy-side asset management adheres to its own investment philosophies, fund mandates, and risk frameworks to make portfolio decisions. 

Concluding the tweet, Oswal said that the group has the right to initiate legal action against such people who are spreading misinformation.