Flyover collapse brings Gammon India stock down

Mumbai: The Gammon India stock fell 8.78 per cent on Monday after a bridge that was being constructed by it collapsed in Hyderabad on September 9. An NDTV report said 2 persons were killed. Several others were injured or trapped under the debris.

The stock closed at Rs 420.65 after the day’s high of Rs 445, touching a low of Rs 410.10.

Gammon India was the contractor for the flyover, a section of which caved in when the supporting columns gave way during a heavy downpour.

The flyover was at one of the busiest areas of Hyderabad. Company officials were not reachable for comment.

Earlier controversy

The company had been under controversy earlier, when SEBI had banned Gammon Infrastructure Projects Ltd (GIPL), a subsidiary of Gammon India, from the IPO market for one year.

The stocks of company fell on December 22 by almost Rs 40.7 after SEBI’s order on December 21.

The order was passed against these entities for violations of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, read with Section 77 of the Companies Act, 1956 observed to have been committed by these entities in the matter of rights issue of Gammon India in 2001.

The order was passed against these entities for violations of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, read with Section 77 of the Companies Act, 1956 observed to have been committed by these entities in the matter of rights issue of Gammon India in 2001.

The company appealed against SEBI’s order to the Securities Appellate Tribunal (SAT), which admitted the appeal and passed an interim order directing SEBI to process GIPL’s draft red herring prospectus. Following this, the company’s stock closed at Rs 300.30 on March 28 after touching the day’s high of Rs 315.20 on the BSE against Monday’s close of Rs 301.45.

The company is facing criminal charges now after the flyover collapse and a report of the breakdown is expected in five days.