CHENNAI: Gitanjali Gems continued to be battered with shares hitting a lifetime low, falling for the seventh straight session and were locked in the 5 per cent lower circuit on Thursday.
On Thursday, the scrip tanked 4.92 per cent on both BSE and NSE to settle at Rs 26.10 - its lowest trading permissible limit for the day - on the BSE and hit a low of Rs 26.05 on the NSE.
So far, shares fell 58.5 per cent in the past week and Thursday’s freefall is spurred by reports that markets regulator Sebi has revived an old case against the firm and its promoter Mehul Choksi for allegedly manipulating trading. It may be noted that Sebi had issued a show cause notice to Choksi and 22 other entities in March 2017 and tasked an investigating team to probe the matter. The probe is still incomplete. Meanwhile, as per reports, the ED is probing 120 shell companies allegedly involving Nirav Modi and Choksi, which further dampened investor sentiment.
In seven days, the stock has plunged 58.5 per cent, eroding Rs 435.41 crore from its market capitalisation.
Prior to February 12, Gitanjali Gems had a market capitalisation of Rs 745.60 crore and the week-long plunge eroded market cap to about Rs 310 crore. On February 14, PNB disclosed that it detected fraudulent transactions with financial implication of about Rs 11,346 crore and the matter has been referred to law enforcement agencies for recovery.
Gitanjali Gems had a market capitalisation of H745.60 crore, and after the scam broke out, its m-cap eroded by H435.41 crore to H310 crore