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Shares of PC Jeweller came under heavy selling pressure on Friday, crashing nearly 60 per cent in intra-day trade, but later recovered most of the lost ground after management's commentary that "the fundamentals of the company remain strong". The stock faced severe drubbing amid sharp fall in the shares of Vakrangee Ltd, which had purchased shares of PC Jeweller late last month. The stock of PC Jeweller tanked 24.40 per cent to end at Rs 365.60 on BSE. During the day, it plummeted 59.65 per cent to Rs 195.10. On NSE, shares of the company plunged 24.78 per cent to close at Rs 364.25. The company's market valuation also fell by Rs 46.5 billion (Rs 4,653.37 crore) to Rs 144.17 billion (Rs 14,417.63 crore). "Promoters have not sold any shares.
Our fundamental is strong," PC Jeweller, MD, Balram Garg told PTI. Asked whether scrip has fallen due to acquisition of shares by Vakrangee, Garg said, "We have not sold any shares to them. Vakrangee has bought from secondary market and how can we stop it." Vakrangee's stake in PC Jeweller would be less than half per cent, he added. In terms of equity volume, 144.27 lakh shares of the company were traded on BSE and over 12 crore shares changed hands on NSE during the day. The stock has been falling for four consecutive days, down 35.14 per cent. According to media reports, Vakrangee is being probed by Sebi for possible stock manipulation. Shares of Vakrangee tanked 10 per cent to Rs 263.10 on BSE today. The stock has been falling for five days. BSE had sought clarification from PC Jeweller earlier in the day with reference to decrease in price. In a clarification to BSE, the company said, "We would like to clarify that we make timely disclosures of all the events, information etc that have a bearing on the operation/performance of the company which include price sensitive information etc. "Further, we wish to clarify that presently the company is not having any such information, which requires disclosure as aforesaid. The company is not aware of reason of sudden decrease in price of equity share of the company today. However, we would like to assure our investors, shareholders, etc that the fundamentals of the company remain strong, the filing said. "We affirm that none of our promoters have diluted stake in the company and none of their shares are pledged as collateral with any institution," it added. Vakrangee Ltd had on January 25 purchased 20 lakh shares of PC Jeweller for a little over Rs 112 crore through an open market transaction. Vakrangee Ltd is a technology company based in Mumbai, that provides banking, insurance, e-governance, e-commerce, and logistics services. The bulk deal data available with NSE showed that Vakrangee bought 20 lakh shares, amounting to 0.51 per cent stake in the jewellery major.