PC Jeweller turns volatile on reports of CBI arresting its owner

The stock hit fresh 52-week low of Rs 95 in intra-day trade, bounced back 34% to Rs 127 in early noon deal, trading 7% lower at Rs 103 on the NSE at 12:25 pm.

Shares of PC Jeweller have turned volatile gaining more than 30% from its intra-day low on the National Stock Exchange (NSE). 

The stock opened 9% lower at Rs 101, slipped 15% in intra-day deal to Rs 95, hitting fresh 52-week low. At around 11:32 am; it bounced back to Rs 127, up 34% from its intra-day low, the exchange data shows.

At 12:25 pm; PC Jeweller was trading 7% lower at Rs 103, falling 18% from intra-day high on the NSE, against 0.52% decline in the Nifty 50 index. The trading volumes on the counter jumped more than 30-fold. A combined 160 million equity shares representing 41% of total equity of PC Jeweller changed hands on the NSE and BSE so far.

In past six trading sessions, the stock tanked 67% from Rs 289 on April 24, 2018.

"The exchange has sought clarification from PC Jeweller Ltd on May 03, 2018 with reference to news appeared in Bloomberg TV dated May 03, 2018 quoting "CBI arrests owner of PC Jeweller". The reply is awaited." BSE said in a corporate announcement.

Responding to the exchange's announcement, the company said “We would like to clarify that the abovementioned news item published in "BTVI" dated 3rd May, 2018 is factually incorrect and Shri Balram Garg, Managing Director of the Company has already appeared on Zee Business for a live interview and clarified the position,”.

"The Company makes 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. We do not find any justification or reason behind decrease in price of equity shares of the Company today" it added.

Meanwhile, PC Jeweller on Wednesday after market hours said funds under FMR LLC and its subsidiaries holding in the company has declined by more than one percentage points.

On April 27, 2018, Fidelity managed funds have sold 4.69 million shares (around 1.19% stake) of the company in open market taking the total holding to 7.04%. The name of buyers not ascertained immediately.