Gitanjali Gems hits all-time low; stock tanks 56% in six trading days

February 21
11:25 2018

Gitanjali Gems hits an all-time low of Rs 27.45, down 10% on the BSE with only sellers were seen on the counter. The stock is frozen maximum lower circuit of the day in past five straight trading sessions. It fallen below its earlier low of Rs 29.95 recorded in March 1, 2016 on BSE in intra-day trade. Till 09:57 am; a combined 41,177 equity shares changed hands on the BSE and NSE.

There were pending sell orders for 15.49 million shares representing 13% of total equity of Gitanjali Gems on both the exchanges. In past six trading sessions, the stock has tanked 56% from Rs 62.85 February 12, 2018 after the Gitanjali Gems and few related companies linked with the Punjab National Bank (PNB) scam. PNB disclosed to the stock exchanges on February 14, 2018 about the detection of a massive banking fraud amounting about of Rs 114 billion ($ 1771.69 million) in one of its branches in Mumbai. The scam allegedly involves jeweller Nirav Modi as the prime accused in connivance with some PNB officials. The name of Mehul Choksi, promoter of Gitanjali Gems, also figured in this scam. Mehul Choksi is uncle of Nirav Modi. The Enforcement Directorate also suspects that Mehul Choksi and Nirav Modi used various shell companies to siphon off millions in the form of bank loans. CLICK HERE TO READ FULL REPORT. Meanwhile, three key officials, Chief Financial Officer (CFO), VP- Compliance and Company Secretary and a board member of Gitanjali Gems resign citing ‘conscience’, personal reasons.

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