IRB Infra extends fall, stock plunges 19%
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Shares of IRB Infrastructure Developers today plummeted 19 per cent amid reports that IRB Group allegedly made major investments and gave large loans to Purti Group of BJP chief Nitin Gadkari.
Making a weak opening, the company scrip nosedived 19.12 per cent to Rs 114.20 on the BSE.
At NSE, the scrip tanked 18.87 per cent to Rs 114.55 in an overall strong market. The stock has been falling for the past four days, eroding Rs 1,032 crore from the company's market value.
As per media reports, major investments and large loans to Purti were made by construction firm Ideal Road Builders (IRB) group, which had won contracts between 1995 and 1999, when Gadkari was PWD minister in Maharashtra.
The BJP chief, who is set for his second term, has denied the allegations and has offered himself and his companies to any probe.
Amid allegations of dubious funding into the companies of Nitin Gadkari, the Corporate Affairs Ministry is also said to be looking into the investments made in his group firm Purti Power and Sugar Ltd.