Gitanjali Gems hits lower circuit, tanks over 56% in 6 days

In six trading sessions, Gitanjali Gems’ shares plunged over 56%, eroding Rs 419.4 crore from its market capitalisation.

Gitanjali Gems plunged another 10% to hit its lowest trading permissible limit for the day, resulting in a lower circuit. The stock has suffered an erosion of Rs 419 crore from its market valuation in the past one week.

Shares of Gitanjali Gems tumbled 9.85% to Rs 27.45 - the lower circuit - on the BSE on Wednesday afternoon. (Reuters)

Shares of Gitanjali Gems tumbled 9.85% to Rs 27.45 -- the lower circuit -- on the BSE on Wednesday afternoon.

On the NSE, shares of the company declined 9.86% to Rs 27.40, its lower price band.

In six trading sessions, the stock plunged over 56%, eroding Rs 419.4 crore from its market capitalisation.

On February 14, Punjab National Bank (PNB) disclosed that it detected fraudulent transactions with financial implication of about Rs 11,346 crore and the matter has been referred to law enforcement agencies for the recovery.

While billionaire jewellery designer Nirav Modi, the alleged perpetrator of this fraud, is not directly linked to any listed company, his relative and business associate Mehul Choksi’s Gitanjali Gems is a listed firm.