Mumbai: Shares in Indian real estate firm DB Realty soared more than 18% on Wednesday morning, extending gains for a second day after touching a record low on Tuesday.
The stock rise comes a day after India’s federal police said it had arrested two executives at the firm, as part of a probe into a telecoms licensing scandal that has possibly cost the government $39 billion in revenue.
DB Realty’s parent firm has a telecoms joint venture with UAE’s Etisalat and is one of the firms named in the federal investigation.
In a statement late Tuesday, DB Realty said the arrested executives had done nothing illegal and that the firm supported them fully.
The stock has fallen more than 40% year to date.
At 9:36am, DB Realty shares were up 15.6% while the main stock index traded 0.9% higher. DB Realty shares had risen as much as 18.6% earlier in the day.