Jeweler's Value Falls By $2.8 Billion After a Gift of Shares

P.N. Gadgil Jewellers Pvt Retail and Production as the Battle for India's $45 Billion Gold Industry Has Begun — Photographer: Dhiraj Singh/Bloomberg

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By Swansy Afonso and Santanu Chakraborty

May 4, 2018 at 4:08 AM UTC

Updated on

May 4, 2018 at 11:07 AM UTC

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An Indian jeweler that saw its market worth reach $3.6 billion at the start of the year is now floundering at about a quarter of that value after one of its founders gifted some shares to family members, raising concern about the company’s governance.

PC Jeweller Ltd. slumped about 40 percent in the past week after the company said that one of its founders, P.C. Gupta, made the gifts in off-market trades. While the shares rebounded 44 percent Friday, they’re still down 70 percent from the Jan. 19 record and the company’s market value has shrunk to 68.9 billion rupees ($1 billion).