Mumbai: PC Jeweller Limited shares plunged sharply today despite moving higher in opening trades. The stock's strong upmove this morning was on the back of an announcement from the company that it board will consider a share buy-back on May 25, 2018.
The stock jumped to Rs 209.70 in a flash this morning, but lost its sheen not long thereafter and eventually declined into negative territory and kept sliding as the session progressed, to touch a low of Rs 152.65, a 52-week low. From the day's high, the stock lost as much as 27%.
On the National Stock Exchange, the stock touched a high of Rs 209 and a low of Rs 152, and is currently down 11.2% at Rs 157.80. The PC Jeweller counter on NSE has clocked a volume of about 91.6 million shares so far in the session.
At present, the stock is hovering around Rs 158 on BSE, down 11.2% from its previous closing price. The counter has clocked a volume of about 6.54 million shares so far in the session, more than four times the average daily volume of 1.56 million shares.
Following the slide in the stock's price last week, the exchanges had sought clarification from the company about the fall. PC Jeweller responded saying that the company did not have any information that may have had a bearing on the stock's movements in the market and that the company did not find any justification or reason behind sudden decrease in price.
The company assured its investors, shareholders and other stakeholders that the fundamentals of the Company
remain strong and it continues to move ahead as per its laid down business plans. Saying that there is no change in the management control and growth strategy of the company and also there is no change in the Company's operating effectiveness. The company also confirmed that none of the promoters of have pledged any of their shareholding.
The early buoyancy at the counter today was due to the announcement from the company about a buyback proposal. However, investors turned cautious after the initial rise, due to lingering concerns on rumours that promoters of the company have been selling stakes.
According to reports in a section of the media, Padam Chand Gupta, a promoter of the company gave away nearly 2% of his 26% holding in PC Jeweller as gift to a relative. The report has raised concerns that there could be more such deals in the future.
The stock hit a 52-week high of Rs 600.65 on 16 January 2018, and the fall from there has been quite steep, with its value plunging about 75% or more than Rs 20,000 crore.
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