ALSO READGitanjali Gems hits all-time low; stock tanks 56% in six trading days Gitanjali tanks 20% for second straight day; PNB hits fresh 52-week low PNB extends fall post Rs 114-bn fraud detection; Gitanjali hits 52-week low PNB names Nirav Modi and Gitanjali Gems in the mega Rs 114-bn fraud PNB scam: ED raids Nirav Modi, Gitanjali Gems, seizes Rs 51 bn in jewellery
Gitanjali Gems is locked in lower circuit for the sixth straight trading sessions, down 5% at Rs 26.10, also its fresh low on the BSE. In past seven trading sessions, it tanked 58% from Rs 62.85 on February 12, following the PNB's declaration of unearthing a fraud of Rs 113 billion involving diamantaire Nirav Modi.
The exchanges has changed circuit filter of the stock from 10% to 5% with effect from today.
On February 14, the PNB revealed some rogue employees had issued letters of undertaking (LoUs) via the SWIFT (Society for Worldwide Inter-Bank Financial Telecommunication) system on behalf of companies belonging to diamantaire Nirav Modi and associate Mehul Choksi, the promoter of Gitanjali Gems.
In past one month, Gitanjali Gems plunged 62% from Rs 26.10 on the BSE against 5.7% decline in the S&P BSE Sensex.
At 10:29 am; PC Jeweller was trading 3.5% at Rs 335, extending its previous day’s 4% decline on the BSE. The stock slipped 42% from Rs 582 during past one month.
PC Jeweller said it is not aware of the reason of sudden decrease in price of equity shares of the company.
“We would also like to clarify that the company does not use the instruments of LUT/LOC etc in its business transactions. The company does not have any international transactions in diamonds. It procures all its diamonds from local markets on cash basis only,” PC Jeweller said with reference to decrease in price.
According to Business Standard report, the rising stress in the industry would mean a few more casualties in the next few quarters.
Three-four big gems and jewellery firms are showing financial weaknesses and might find it tough to withstand shocks; the report suggested quoting industry sources. CLICK HERE TO READ FULL REPORT.
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