PNB fraud: Gitanjali Gems tanks over 56% in 6 days

NEW DELHI: Gitanjali Gems plunged another 10 per cent to hit its lowest trading permissible limit for the day and has suffered an erosion of Rs 419 crore from its market valuation in the past one week.

HIGHLIGHTS

• On February 14, Punjab National Bank disclosed that it detected fraudulent transactions with financial implication of about Rs 11,346 crore
• Since then, the stock has suffered an erosion of Rs 419 crore from its market valuation in the past one week.

The stock tumbled 9.85 per cent to Rs 27.45 -- its lower circuit -- on BSE on Wednesday.

On NSE, shares of the company declined 9.86 per cent to Rs 27.40, its lower price band.
In 6 trading sessions, the stock plunged over 56 per cent, eroding Rs 419.4 crore from its market capitalisation.

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.