Shares of Jyoti CNC Automation came under heavy selling pressure on Monday, plunging as much as 14–16% in intraday trade, as investors reacted to developments involving its overseas subsidiary.
As of 11:51 am, the stock was down 113.15 points, or 13.81%, at 706.05 on the Bombay Stock Exchange (BSE).
The sharp fall follows reports that French authorities have initiated a judicial probe into the company’s subsidiary, Huron Graffenstaden SAS, over alleged violations linked to export control norms.
The investigation has introduced a fresh layer of uncertainty around the company’s international operations, triggering a steep selloff in the stock.
In a stock exchange filing, the into the subsidiary and certain employees over export controls related to dual-use machinery.
It added that interim measures include restrictions on the subsidiary’s director general, seizure of bank accounts worth around EUR 4 million, and attachment of certain properties.
Despite the developments, Jyoti CNC sought to reassure investors, stating that the subsidiary has refuted the allegations and will contest them.
The company also said that business operations at Huron Graffenstaden continue as usual and that the developments are not expected to have a material impact on its overall operations.
It further noted that over 85% of the group’s revenue comes from the standalone Indian entity, limiting the potential financial impact from the subsidiary-level developments.
However, for investors, the concern is less about immediate impact and more about uncertainty. Legal proceedings in overseas jurisdictions can be prolonged, and the lack of clarity on timelines or outcomes has weighed on sentiment.
The latest trigger has come at a time when the stock was already under pressure, with a visible downtrend in recent weeks. Monday’s developments appear to have accelerated selling, as investors reassessed risk in light of the new information.
The broader market backdrop has also remained weak, with global cues turning negative amid rising geopolitical tensions and higher crude oil prices.
However, the magnitude of the fall in Jyoti CNC suggests that the decline is largely driven by company-specific concerns.
Going ahead, investor focus is likely to remain on further disclosures from the company and any clarity on the status of the investigation. Until then, sentiment around the stock may remain fragile, with volatility expected to persist.