OnMobile hits new low despite co denial of wrongdoing

Mobile value-added services provider OnMobile’s shares hit a new low today, after opening higher in early trades, reacting to an ET Now report that the boardof the company has ordered a probe into allegations that promoter Arvind Rao has siphoned off funds.At 11:05 am, the stock was at Rs 31.95 down 3.91 percent.

Company CEO Arvind Rao clarified in a BSE announcement that the media reports are “devoid of factual accuracy” and notified that the board is not investigating him for any misappropriation charges.

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The company also said that allegations that the company’s M&A head Sandhya Gupta was sacked by the board for a similar probe was false and that Gupta resigned for purely personal reasons.

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The stock had fallen 17 percent on Thursday after the news broke.

OnMobile’s services include company offers contest management, content aggregation and distribution, mCommerce solutions and missed call alerts.

The company was incorporated in 2000 in California and was initially named Onscan Technologies. Currently based in Banglaore, it has global operations including offices in London, Paris and Sydney.