Trust of investors in Gitanjali Gems took a bodyblow after the company came under investigative crosshairs with Punjab National Bank's detection of an Rs 11,400-crore fraud.
The impact was visible in the stock, which extended its losses for the third straight session with a plunge of another 20 per cent on Friday. The scrip has tanked 40 per cent during February 12-16.
This has also wiped out around Rs 300 crore of investors’ wealth as market capitalisation of the company fell to Rs 445.40 crore on February 16, from Rs 745.50 crore on February 12.
The stock dived 19.94 per cent to Rs 37.55 on Friday morning.
Interestingly, Gitanjali Gems' tagline reads 'Trust Forever'.
As a multi-agency probe continues against Nirav Modi for allegedly masterminding India’s biggest-ever banking fraud, the stock market dealings of his relative and close associate Mehul Choksi have come under the scanner of markets regulator Sebi and stock exchanges.
The regulator and the exchanges are also probing Choksi and his listed entity Gitanjali Gems for disclosure lapses, including for postponement of a board meeting earlier this week without disclosing sufficient reasons, according to PTI.
Punjab National Bank (PNB) earlier this week disclosed that it has detected some fraudulent transactions with financial implication of $1.77 billion (over Rs 11,000 crore) and the matter has been referred to law enforcement agencies for the recovery.
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