Shares of Wadia Group firms tanked up to 10 per cent Tuesday amid media reports that Ness Wadia has been sentenced to a two-year jail term by a court in Japan over alleged possession of drugs.
Bombay Dyeing shares plunged 9.78 per cent to close at Rs 112.60 on the BSE. During the day, it tumbled 17.42 per cent to Rs 103.05.
Shares of Britannia Industries went down by 2.50 per cent to Rs 2,893.10 and Bombay Burmah Trading Corporation fell by 2.40 per cent to close at Rs 1,241.30.
Meanwhile, the BSE Tuesday sought clarification from the three companies with respect to the news.
"Wadia group shares such as Bombay Dyeing, Bombay Burmah, Britannia slipped today as the Wadia Group heir Ness Wadia was sentenced to two years jail in Japan due to possession of drugs," said Umesh Mehta, head of research, Samco Securities Ltd.
Wadia Group scion and co-owner of IPL team Kings XI Punjab, Ness Wadia has been sentenced to a two-year jail term by a court in Japan over alleged possession of drugs, a media report said.
The Financial Times reported that Wadia, who was on a skiing holiday, was arrested in early March at New Chitose Airport in the northern Japanese island of Hokkaido after customs officials found 25g of "what appeared to be cannabis resin in his trouser pocket".
Reacting to the report, a Wadia Group spokeperson said Ness Wadia is in India.
"The judgement is clear. It is a suspended sentence. Hence, it will not impact Ness Wadia in the discharge of any of his responsibilities and he will continue to play the role that he has done hitherto, both within the Group and outside," the spokesperson added.
Ness Wadia is director in major firms of the Wadia Group, including Bombay Dyeing and Bombay Burmah Trading Corporation.
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