Buyback proposal fails to lift PC Jeweller; stock tanks 23% from day's high

The stock dipped 18% to Rs 119 falling 23% from its intra-day high of Rs 154 on the BSE on back of heavy volumes.

Shares of PC Jeweller have dipped 18% to Rs 119 per share falling 23% from its intra-day high on the BSE, despite the company announcing a share buyback proposal. The stock was up 6% to Rs 154 in early morning trade.

PC Jeweller on Sunday, April 29, said that the board of directors of the company will meet on Friday, May 5, 2018 to consider the proposal for buy back of fully paid-up equity shares of the company.

The board will also consider the audited standalone and consolidated financial results of the company for the quarter/financial year ended March 31, 2018 and recommendation of dividend, if any.

With today’s fall, the stock of PC Jeweller has tanked 59% in past one week from Rs 289 on April 24, 2018. The stock plunged 80% from its 52-week high of Rs 601 hit on January 16, 2018. Investors have lost Rs 178 billion market capitalisation during the period.

We do not find any justification or reason behind sudden decrease in price of equity shares of the Company in recent past.

However, we would like to once again assure our investors, shareholders and other stakeholders etc. that the fundamentals of the Company remain strong and it continues to move ahead as per its laid down business plans, PC Jeweller said on clarification with reference to decrease in price.

We want to confirm 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, it added.

Meanwhile, DVI Fund Mauritius had 3.85% stake in PC Jeweller during December 2017 quarter, offloaded its entire holding in January-March 2018 quarter. The foreign portfolio investor held nil holding in the company at the end of March quarter, the shareholding pattern data shows.

At 11:13 am; PC Jeweller was trading 15% lower at Rs 123 on the BSE, as compared to 0.07% rise in the S&P BSE Sensex. The trading volumes on the counter nearly doubled with a combined 60.12 million shares changed hands on the BSE and NSE so far.