CARE Ratings slips 13%, nears 52-week low after MD & CEO resigns

The board has accepted the resignation of Ajay Mahajan as the MD & CEO of the company due to personal reasons.

Shares of CARE Ratings slipped 13 per cent to Rs 475.35 on the BSE on Wednesday, on the back of heavy volumes. The slump comes after the resignation of Ajay Mahajan as the Managing Director and Chief Executive Officer (MD & CEO) of the company due to personal reasons.

The stock of ratings company traded close to its 52-week low of Rs 474.95 that it had touched on April 27, 2021. Earlier, it had hit a 52-week high of Rs 791.15 on July 2, 2021. At 10:02 AM; the stock was down 12 per cent at Rs 481.50, as compared to 0.62 per cent decline in the S&P BSE Sensex. Meanwhile, the trading volumes on the counter jumped over 8-fold as 536,000 equity shares changed hands on the NSE and BSE.

"The board of directors of the company at their meeting held on Tuesday, April 26, 2022, considered and accepted the resignation of Ajay Mahajan as the MD & CEO," CARE Ratings said in a regulatory filing. 

That apart, Ajay Mahajan will be relieved from the services as the MD & CEO of the company effective from the close of business hours on May 31, 2022. Consequently, he shall also cease to be a key managerial personnel of the company.

"The board has decided to appoint Mehul Pandya, Executive Director – Business Development as interim Chief Executive Officer of the Company with effect from June 01, 2022," the company added.