Following the untimely demise of Muthoot Group chairman MG George Muthoot on Saturday, the shares prices of Muthoot Finance Ltd plunged over 6%.
According to reports, reacting to George’s demise the shares fell as much as 6.57% and hit a low of Rs 1,205. On the National Stock Exchange (NSE) Muthoot Finance shares were trading at Rs 1,294 and are down 1.58%. In a statement, Muthoot Group said that Muthoot Finance had reached new heights under the guidance of George.
“MG George Muthoot was the mentor and visionary leader who played a pivotal leadership role through his long career in building one of the most trusted financial powerhouses in the country,” the company said in its exchange filing on March 6, 2021. “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 group said.
Earlier, Delhi Police informed that 72-year-old George fell from the fourth floor of his residence in South East Delhi on Friday evening. He was rushed to Fortis Escort Hospital but succumbed to his injuries during treatment. Reportedly, Amar Colony Police Station received information around 9.21 pm that George was admitted to the hospital.
“George was taken to the hospital and he was declared dead during treatment. On Saturday, his post-mortem was conducted at AIIMS. No foul play is suspected. Inquest proceeding is being done,’ said DCP South East Delhi RP Meena. The police checked the CCTV cameras and established that George was alone when the incident took place. Reportedly, one of the CCTV footages shows him standing alone on the fourth floor.
George is one of the richest Keralites. In 2011, Forbes Asia Magazine named George as the 50th richest Indian. In 2019, he reached the 44th spot and in 2020 Forbes listed him as the 26th richest Indian billionaire with a net worth of $4.8 billion. The Muthoot Group’s Muthoot Finance has a loan book of close to Rs 56,000 crore in December 2020 quarter.
One must note that when the Chief Executive Officer (CEO), Managing Director (MD) or Chairman of a company dies or quits, the shares of that company plummets. After the death of Café Coffee Day founder VG Siddhartha, the company’s shares fell to a historic low.