Mumbai: Shares of Gammon India fell over 12 per cent on the Bombay Stock Exchange, a day after Delhi Metro Rail issued a showcause notice to the company in the wake of a recent mishap at a site that killed six people in the city.
After opening on a weak note, Gammon India, one of the contractors for the Delhi Metro projects, fell over 12 per cent to touch a low of Rs 130.10 on the BSE.
A similar movement was witnessed on the National Stock Exchange, where the stock opened at Rs 137,80, down nearly 7 per cent from its previous close. Later it fell 11 per cent to touch a low of Rs 131.80.
Blaming deficiency in design and material for recent mishap, the Delhi Metro Rail Corporation (DMRC) on Tuesday issued a notice to Gammon India asking it to explain why it should not be blacklisted for two years and suspended two of its deputy chief engineers.
If blacklisted, Gammon would not be able to participate in any of the future contracts but will be allowed to complete the existing projects.
On volume front, over 26.90 lakh shares changed hands on the two bourses.
At mid-day, the stock was trading at Rs 141.75, down 4.61 per cent from its last close on the BSE and on the NSE, it was quoting at Rs 141.50, down 4.29 per cent.
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