Jyoti CNC Automation share price dropped more than 14% on Monday, April 13, following news that French authorities are probing its subsidiary, Huron Graffenstaden SAS, for purported breaches of EU export control regulations concerning dual-use technology machinery.
The inquiry has led to substantial interim actions, including the freezing of EUR 4.00 million in bank accounts, limitations on the director general’s responsibilities, and the attachment of two residential properties.
Although the subsidiary denies the charges and continues its operations, the company asserts that the investigation will not negatively affect its standalone business activities, as the parent company accounts for over 85% of group revenues.
The company in an exchange said that Huron Graffenstaden SAS has been formally notified about the allegations directed at it and denies these claims. The subsidiary is in the process of obtaining clarification from the appropriate authorities and legal guidance to vigorously challenge the accusations.
Based on the company’s evaluation, although some confiscated assets and the services of certain staff members under scrutiny may be temporarily inaccessible, Huron Graffenstaden SAS’s current business and operations proceed as normal.
The announcement was communicated via formal letters to both stock exchanges. The regulatory filing was signed by Company Secretary and Compliance Officer Maulik B. Gandhi, confirming adherence to listing regulations.
Although the company admits it has not completely determined the potential financial repercussions beyond the assets currently frozen, management remains optimistic that the investigation will not majorly interfere with the group’s overall business activities, considering the substantial revenue contribution from the parent company.
Jyoti CNC Automation share price today
Jyoti CNC Automation share price today opened at ₹749.70 apiece on the BSE, the stock touched an intraday low of ₹696.20 per, and an intraday high of ₹778.50 apiece.
According to Ruchit Jain, Head – Equity Technical Research, Wealth Management, Motilal Oswal Financial Services, the stock has been forming lower top lower bottom formation and is thus in a downtrend. Today’s gap down move followed by volume based selling is a negative signs and hence was may see a continuation of the bearish trend.
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