Mumbai: Erasing initial losses, shares of telecom value-added service provider OnMobile on Tuesday made a smart recovery and rose by over 7 percent, even as the company's Managing Director and CEO Arvind Rao resigned from the post amid allegations of financial irregularity.
Shares of the company recovered the initial losses and as the trade progressed it gained 7.44 percent to Rs 36.10 on the BSE, amid an overall upsurge in the broader market.
At the NSE, the scrip jumped 7.44 percent to Rs 36.10.
OnMobile in a statement yesterday said Rao's resignation has been accepted by the Board.
"Recognising that these weaknesses took place during his tenure, Arvind Rao has submitted his resignation from the position as Managing Director and CEO with immediate effect and the Board has accepted the same," the statement said.
"While the review has identified some weaknesses, strong alternate controls have ensured that the company did not suffer any loss," it added.
OnMobile's Co-founder and Executive Director Mouli Raman, has been given role of interim Managing Director. The company has also initiated a search for a new CEO.
Meanwhile, in the broader market the BSE Sensex was trading at 17,486.87, up 94.89 points 1130 hrs.