Shares of Bharat Forge extended the previous session's losses on May 8, a day after reports surfaced about company chairman Baba Kalyani refusing to share any portion of the assets of the Kalyani joint family with the children of his estranged sister Sugandha Hiremath.
The fall in stock price also comes ahead of the company's Q4 results slated to be announced later in the day.
In an affidavit filed in the civil court of Pune, Kalyani said his nephew Sameer Jai Hiremath and niece Pallavi Swadi have no right to seek partition of the Kalyani Hindu undivided family’s (HUL) assets as they are not part of it under present law.
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The Bharat Forge MD said Hiremath and Swadi cannot claim to be co-partners in the Kalyani joint family as they belong to the Hiremath family by birth.
Earlier, Sameer and Pallavi had filed a suit in a Pune court seeking partition of the Kalyani family assets, which include Bharat Forge and other listed and privately held companies.
Baba Kalyani's response is part of an affidavit filed against the application by the siblings for an ad-interim relief, urging the court to prohibit Baba Kalyani from conducting any transactions related to the properties of the Kalyani HUF.
The Hiremaths and Kalyanis are embroiled in a bitter dispute concerning the ownership of shares in pharmaceutical firm Hikal Ltd and assets held by specific HUFs within the Kalyani joint family. This contention extends to numerous real estate properties and collections of gold jewellery.
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At 9:38 am, Bharat Forge shares were trading at Rs 1,222.75 apiece on the National Stock Exchange (NSE), down 1.3 percent from the previous close. The stock has fallen nearly 4 percent in the last five sessions, turning red for this year. In the last one year, the stock has outperformed benchmark Nifty 50, rising over 58 percent.
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