Investors in Gitanjali Gems stuck! Stock hits fresh all-time low
Investors in Gitanjali Gems suffered another blow on Wednesday with stock plunging 10 per cent to again hit its lowest circuit for the fifth straight day.
In 6 trading sessions, the stock plunged over 56 per cent, eroding Rs 419.4 crore from its market capitalisation. The stock is now at Rs 27.45, a whopping 75 per cent slump from its 52-week high hit on November 28, 2017.
On February 14, Punjab National Bank (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 the recovery.
While billionaire jewellery designer Nirav Modi, the alleged perpetrator of this fraud, is not directly linked to any listed company, his relative and business associate Mehul Choksi's Gitanjali Gems is a listed firm.
Choksi is absconding, while the company has reportedly shut down businesses, rendering pink slips to many employees.