Shares of Gitanjali Gems plunged another 20 per cent in the morning trade after the company came under the scanner of various investigating agencies following Punjab National Bank’s Rs 11,400-crore fraud detection.
The stock fell for the third straight session to hit 52-week low both on the BSE and NSE. On the BSE, the stock fell 19.94 per cent to a low of Rs 37.55. On the NSE, the stock cracked 19.98 per cent to Rs 37.45.
Among other jewellery stocks,
On February 14, Punjab National Bank had disclosed that it has detected some fraudulent transactions with a financial implication of about Rs 11,346 crore and the matter has been referred to law enforcement agencies for the recovery.
“Four big jewellers -- Gitanjali, Ginni, Nakshatra and Nirav Modi -- are under the scanner. The CBI and Enforcement Directorate are looking at their arrangements with various banks and end use of money,” a senior official had said.
Meanwhile, SEBI and stock exchanges are also probing Modi’s business partner Mehul Choksi, and his listed entity Gitanjali Jewellers, for disclosure lapses, including for postponement of a board meeting earlier this week without disclosing sufficient reasons.