PNB scam: Gitanjali Gems falls for 3rd day, market cap down by Rs 300 cr

New Delhi: Market valuation of Gitanjali Gems went down by Rs 300 crore in the last three trading sessions, as the counter saw severe selling pressure after the company came under scanner of various investigating agencies following Punjab National Bank’s Rs 11,400-crore fraud detection. During the day, the company’s stock opened on a bearish note, then fell 20 percent to a low of Rs 37.55, and ended at the same on both BSE as well as the NSE. This is the second consecutive day that the stock has registered a 20 percent fall. [caption id=“attachment_4354563” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] Following the downtrend, the market capitalisation of the company was eroded by Rs 300 crore in the last three trading sessions. At the end of today’s trading, it came down to Rs 445.40 crore. Among other jewellery stocks, Tribhovandas Bhimji Zaveri (TBZ) settled at Rs 109, down 3.41 percent, Thangamayil Jewellery ended 5 percent lower at Rs 514.45 on BSE. Meanwhile, Rajesh Exports settled at Rs 807.65, up 0.55 percent on BSE and PC Jeweller, which had slumped 19.50 percent intra-day yesterday, was quoted at Rs 379.75, up 6.55 percent. On 14 February, Punjab National Bank (PNB) disclosed that it has detected some fraudulent transactions with financial implication of about Rs 11,346 crore and the matter has been referred to law enforcement agencies for the recovery. “Four big jewellers – Gitanjali, Ginni, Nakshatra and Nirav Modi – are under scanner. The CBI and Enforcement Directorate is looking at their arrangements with various banks and end use of money,” a senior official had said. Meanwhile, Sebi and stock exchanges are also probing Modi’s business partner Mehul Choksi, and his listed entity Gitanjali Jewellers, for disclosure lapses including for postponement of a board meeting earlier this week without disclosing sufficient reasons.