Money Matters not to use QIP proceeds

The company’s Chairman and Managing Director Rajesh Sharma and Chief Financial Officer Suresh Gattani were arrested last week by the CBI for allegedly arranging loans for corporate clients by paying bribes to bank officials.

The company had raised the money in October this year by selling a 20.4 percent stake at Rs 625.25 a share and had planned to use the proceeds for its proposed asset financing business.

The board of the company,which includes ex-chiefs from LIC and Allahabad Bank,met in Mumbai last Friday and Saturday and decided against using the proceeds.

Contrary to reports that the independent directors would resign,they have decided to continue,saying their resignations would not be good for the company at this juncture.

At the board meeting,it was also decided to constitute a committee for the interim period for making essential payments like salaries,payment of statutory dues and day to day expenses,among others,the statement added.

The Money Matters scrip was trading ten per cent down at Rs 345.95 at the NSE at 1500 hours.