Gitanjali Gems downfall continues; tanks 71% in three weeks

The stock is locked in lower circuit for the 13th straight trading day, down 5% at Rs 18.35 after the media report suggested that the CBI had arrested Vice President of the company in PNB case.

Gitanjali Gems is locked in lower circuit for the 13th straight trading day, down 5% at Rs 18.35, its new low on the BSE, after the media report suggested that the Central Bureau of Investigation (CBI) arrested Vice President of the company in Punjab National Bank (PNB) case.

In past three weeks, the market value of Gitanjali Gems tanked 71% from Rs 62.85 on February 12, 2018, as compared to 1.2% decline in the S&P BSE Sensex. Till 12:36 pm; a combined 29,333 equity shares changed hands and there were pending sell orders for 8.33 million shares on the BSE and NSE.

The BSE said, the exchange has sought clarification from Gitanjali Gems with respect to news flash appearing on CNBC TV18 - March 06, 2018 titled "CBI arrests Vice President of Gitanjali Gems in PNB case". The reply is awaited.

On February 14, 2018, PNB disclosed that it detected fraudulent transactions with a financial implication of about Rs 114 billion ($1.77 billion) and the matter has been referred to law enforcement agencies for the recovery.

The fraud, which included money-laundering among others, was related to the Firestar Diamonds group in which the CBI has booked Nirav Modi, his wife Ami, brother Nishal Modi and uncle and business partner Mehul Choksi - the promoter of Gitanjali Gems.

On February 28, PNB said that the alleged fraud perpetrated by jewellers Modi and Mehul Choksi may be around $2 billion, over $204 million more than previously estimated.

PNB was trading 1% higher at Rs 101 after hitting low of Rs 99 in early morning deal on the BSE today. The stock hit 20-month low of Rs 92 on February 28, in intra-day trade.