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What is the story about?
Shares of Jyoti CNC Automation Ltd. declined as much as 16% on Monday, April 13, after French authorities initiated investigation into its material subsidiary Huron Graffenstaden SAS and certain of its employees, for allegedly exporting certain machines with dual-use technology, in violation of European Union laws.
The stock is the top loser on both the Nifty 500 and the BSE Smallcap index.
In an exchange filing on Sunday, Jyoti CNC said the French authorities investigation was regarding export controls and export-documentation of machinery considered to be of dual use.
The company said it is awaiting a formal outcome of the probe, but it has been made away of the interim measures being taken by the French authorities:
Huron Graffenstaden has received a notice regarding the same and it refutes the allegations made and is currently seeking better clarity from relevant authorities and legal advice in relation to the actions initiated and will contest it strongly, the exchange filing stated.
The company said that at this juncture, while the assets are seized and services of certain employees who are part of the probe may not be available to the Group for the moment, the current business and operations of Huron Graffenstaden remain as usual.
Also, the mentioned actions are not expected to have an adverse impact on business and operations of Jyoti CNC Automation, which on a standalone basis contributes over 85% of its revenue from operations to the group, it added.
Shares of Jyoti CNC Automation declined 15.5% to hit an intraday low of ₹691.9 apiece on Monday. The stock was down 13.6% at ₹707.8 apiece at 10.20 am.
Also Read: Explained — Why Tata Chemicals shares surged as much as 11% in a weak marke
The stock is the top loser on both the Nifty 500 and the BSE Smallcap index.
In an exchange filing on Sunday, Jyoti CNC said the French authorities investigation was regarding export controls and export-documentation of machinery considered to be of dual use.
The company said it is awaiting a formal outcome of the probe, but it has been made away of the interim measures being taken by the French authorities:
- Director general of Huron Graffenstaden SAS has been temporarily restricted from discharging any duties regarding the firm.
- Interim seizure of certain bank accounts of the company totaling €4 million and two residential properties owned by Jyoti SAS.
- The French authorities have initiated a formal judicial probe against Huron Graffenstaden SAS and certain of its employees.
Huron Graffenstaden has received a notice regarding the same and it refutes the allegations made and is currently seeking better clarity from relevant authorities and legal advice in relation to the actions initiated and will contest it strongly, the exchange filing stated.
The company said that at this juncture, while the assets are seized and services of certain employees who are part of the probe may not be available to the Group for the moment, the current business and operations of Huron Graffenstaden remain as usual.
Also, the mentioned actions are not expected to have an adverse impact on business and operations of Jyoti CNC Automation, which on a standalone basis contributes over 85% of its revenue from operations to the group, it added.
Shares of Jyoti CNC Automation declined 15.5% to hit an intraday low of ₹691.9 apiece on Monday. The stock was down 13.6% at ₹707.8 apiece at 10.20 am.
Also Read: Explained — Why Tata Chemicals shares surged as much as 11% in a weak marke
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