Money Matters, the firm, which is in the forefront of the loan for bribery scandal, today, informed the stock exchanges that it’s board has decided to deploy the money it recently raised through qualified institutional placement (QIP) in bank fixed deposits. The company is charged with bribing bank officials to facilitate loans for its corporate clients and the CBI has arrested its chairman and managing director Rajesh Sharma along with chief financial officer Suresh Gattani in this connection.
The company that had raised Rs 445 crore from Fidelity, Morgan Stanley, DMO and Wellington after these institutions picked a 25 per cent stake in the company. The communication to the exchange further states that no amount from this deposit will be utilised without the prior approval of the Board.
The news of this development has further impacted the share price of Money Matters which witnessed a 10 per cent fall to Rs 345.95 today, compared on the previous closing of Rs 385 on Friday. Since the scam came into light on 24 November, the share price has witnessed a 48 per cent fall.