After recording losses on eight successive sessions, and plunging to a low of Rs 94.55 on Thursday, PC Jeweller bounced back to end the session on a high note. The upmove continued this morning, with the stock soaring on high volumes and recording handsome gains.
The stock started sliding no soon that it touched a high of Rs 600.65 in mid-January this year, with reports about non-compliance with regulations with regard to disclosure norms, the company's alledged relationship with Vakranjee, which had come under SEBI's scanner for alleged price rigging and volume manipulations of its stock on the exchanges.
In early February this year, there were reports that the market regulator was analysing trades done at the Vakranjee counter during the period January - June 2016 and reportedly found some entities to have jacked up the stock's price in the market. The report said that about 22 entities were continuously buying and selling the scrip and nearly three fourth of the entities contributed to about 90% of their overall trading activity in just Vakranjee stock alone. However, the company clarified that the company did not receive any communication either from Stock Exchanges or Security Exchange Board of India about any investigation into the matter and that the rumours of involvement of Company in price and volume manipulation were completely baseless and factually incorrect.
The company further said that it has treasury fund of more than Rs 1500 crore and that it had made some direct equity investments in PC Jeweller. Subsequently, on receiving feedback from the company's investors community to avoid any direct equity investment, Vakranjee released the Treasury Investment Policy w.e.f. January 30, 2018 as per which the company will not do any further direct equity investments.
PC Jeweller shares too tumbled around that time with investors pressing sales at the counter on speculations that the promoters might have business relationship with Vakrangee Limited.
PC Jeweller rose sharply on Monday (April 30) after the company said that its board of directors will meet on May 25 to consider a share buy-back proposal. However, the buoyancy did not last long and the stock soon faltered and fell to a 52-week low.
Things turned worse for the stock on May 2, as the bears hammered the stock once again and this continued during the early part of the session on May 3 as well. The stock, nevertheless, bounced back strongly after the company said the news about arrest of the company owner was factually incorrect.
A filing by the company to the stock exchanges said "The company makes timely disclosure of all the events and information that have a bearing on the operation and performance of the company, which include price sensitive information and the like. Further, we wish to clarify that presently the company is not having any such information which requires disclosures as aforesaid."
We would like to assure our investors, shareholders and other stakeholders that there is nothing wrong with the company and its operations, the fundamentals of the company remain strong and it continues to move ahead on growth path," the filing added.
This morning, the PC Jeweller stock rose to a high of Rs 147 on BSE and is currently at Rs 145.50, up 19.8% from its previous close. The counter has clocked a volume of about 6.5 million shares so far in the session.
On the National Stock Exchange, the PC Jeweller counter has clocked a volume of over 67.5 million shares so far in the session.
Here is how PC Jeweller has fared during the last seven days: