IRB Infrastructure has tanked 19% to Rs 114.20, extending its over 5% fall in past three trading sessions on reports that the IRB Group has made major investments and given large loans to Purti Power and Sugar Ltd controlled by BJP President Nitin Gadkari.
“According to filings of Purti Power and Sugar, the Purti Group flagship, Global Safety Vision, a company part of the D P Mhaiskar-promoted Ideal Road Builders (IRB) Group, has extended a loan of Rs 164 crore,” the Business Standard report suggests.
However, in a clarification on the stock exchanges the infrastructure major said that it has no business relationship with Nitin Gadkari.
“IRB Infrastructure Developers Ltd and its subsidiaries do not have any business relationship, past or present, with Nitin Gadkari,” the statement filed at the National Stock Exchange and Bombay Stock Exchange said.
The stock opened at Rs 138 and has seen a heavy volume on the counter. As many as a combined 6.8 million shares have already changed hands so far against an average sub three million shares that were traded daily in past two weeks.
