tumbled 16 per cent on the NSE to ₹691.90 on Monday, down from the previous close of ₹819.20, after the company disclosed an investigation involving its French subsidiary.
The decline follows a stock exchange disclosure by the company stating that French authorities have initiated a probe into Huron Graffenstaden SAS and certain employees. The investigation relates to the alleged export of machines with dual-use technology in violation of European Union laws.
According to the company’s filing, Huron Graffenstaden SAS has received notice of the actions and has refuted the allegations. It is currently seeking clarity from the relevant authorities and legal counsel, and intends to contest the matter strongly.
The disclosure further noted that, as part of interim measures, French authorities have temporarily restricted the director general of the subsidiary from discharging duties. In addition, certain bank accounts totalling about EUR 4.0 million and two residential properties owned by Jyoti SAS have been seized. A formal judicial investigation has also been initiated against the subsidiary and some of its employees.
Despite these developments, the company stated that business operations at Huron Graffenstaden SAS remain “as usual” for now, although some assets and services of employees involved in the investigation may not be available temporarily.
Jyoti CNC clarified that it does not expect any adverse impact on its overall business operations. The company highlighted that, on a standalone basis, it contributes over 85 per cent of the Group’s revenue from operations, thereby limiting the potential financial fallout from the subsidiary-level issue.
The company added that it is awaiting formal outcomes of the investigation while continuing to cooperate with authorities.