Gitanjali shares fall for third day, investors lose Rs. 300cr
What's the story
Shares of Gitanjali Gems fell for the third straight day today. It dropped another 20%, closing at Rs. 37.45 on NSE. This was its 52-week low on both BSE and NSE. Investors were staring at a Rs. 300cr loss as Gitanjali's market capitalization fell steeply from Rs. 745.5cr on February 12 to Rs. 445.4cr today. Ironically, Gitanjali's tagline reads: 'Trust forever.'
Case
Four jewelry brands under the scanner for suspected irregularities
Mehul Choksi-owned Gitanjali and Nirav Modi's own namesake brand came under the scanner of various agencies after PNB detected the massive fraud three days ago. Apart from them, jewelry brands Ginni and Nakshatra are also under investigation for suspected irregularities. "The CBI and Enforcement Directorate are looking at their arrangements with various banks and end use of money," an official said.
Shares
Most reputed jewelers fell sharply on the indices
On the BSE, Gitanjali stocks fell 19.94% to end the day at Rs. 37.55. Among other jewelers, Tribhovandas Bhimji Zaveri (TBZ) fell 2.52% to a low Rs. 110, Thangamayil Jewellery slumped 5% to Rs. 514.45, and Rajesh Exports fell almost 1% to Rs. 795.55. In contrast, PC Jewellers, which had dropped 19.50% yesterday, gained Rs. 23.65 to close at Rs. 379.95.