Shares of Jyoti CNC Automation Ltd experienced a significant downturn on Monday, April 13, 2026, plummeting by as much as 15.53% to hit a day's low of Rs 692. The stock was last recorded trading 14.23% lower at Rs 702.60, marking a 25.35% decline over the past six months.
The sharp drop in Jyoti CNC Automation shares followed the company's disclosure of an ongoing investigation by French authorities into its material subsidiary, Huron Graffenstaden SAS. The probe focuses on export controls and export-documentation practices related to machinery deemed to be of dual-use.
French Authorities Initiate Formal Judicial Investigation
Jyoti CNC Automation stated that relevant authorities have initiated an investigation against Huron Graffenstaden SAS and certain employees, who have been interviewed regarding the allegations. While awaiting a formal outcome, the company has been informed of several interim measures:
- The director general of Huron Graffenstaden SAS has been temporarily restricted from discharging duties.
- Interim seizure of certain bank accounts of Huron Graffenstaden SAS, totaling approximately EUR 4.0 million, and two residential properties owned by Jyoti SAS.
- A formal judicial investigation has been initiated by French authorities against the subsidiary and its employees.
Huron Graffenstaden SAS has received notice of these actions and firmly refutes the allegations. The subsidiary is actively seeking further clarity from the authorities and legal advice, asserting its intention to contest the actions strongly.
Company Assesses Impact on Operations
Despite the investigation and interim measures, Jyoti CNC Automation believes that the actions are not expected to have an adverse impact on its standalone business and operations. The company highlighted that its core operations contribute over 85% of the group's total revenue from operations. While the seized assets and the services of certain employees under investigation may be unavailable temporarily, the current business and operations of Huron Graffenstaden SAS are expected to continue as usual.
As per exchange data, promoters hold a 62.55% stake in Jyoti CNC Automation Ltd.