Shares of Gitanjali Gems locked in lower circuit for forth day in a row, eroding over Rs 2,000 crore to its market value, on concerns that the recent drop in gold prices coupled with the Reserve Bank of India and restrictions by the government would hurt company's growth and earnings going forward.
The stock almost halved to Rs 263 from Rs 507 at the beginning of current week, have seen erosion of market capitalization of Rs 2,246 crore at Rs 2,418 crore on BSE. The company had m-cap of Rs 4,664 crore on June 21.The Jewellery retailer has lost 60% or Rs 3,560 crore of its market value from its recent high of Rs 650 touched on April 23 this year.
Foreign institutional investors (FIIs), the largest non-pro
moter shareholders, are major losers, lost nearly Rs 450 crore in past four trading sessions. The overseas investors had raised their holdings in the company by 4.17 per cent points to 19.98% during January-March quarter, when the stock was trading at an average price of Rs 580.
Life Insurance Corporation of India has lost nearly Rs 100 crore, as the insurance giant hold 4.36% stake in the company at the end of March 2013 quarter.
Bodies corporate held 11.56% stake have seen value erosion of Rs 260 crore and individual public shareholders lost Rs 70 crore in past four trading sessions.
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