Vakrangee hits 5% upper circuit after falling 62% in nine trading days

The stock locked in upper circuit of 5% at Rs 202, recovering 10% from its early morning low of Rs 183 on BSE

Vakrangee is locked in upper circuit of 5% at Rs 202, recovering 10% from its early morning low on BSE with no sellers seen on the counter. The stock opened 5% lower at Rs 183, against its Thursday’s close of Rs 192 on BSE.

Till 11:16 AM; a combined 21.5 million equity shares representing 2% of total equity of Vakrangee changed hands on BSE and NSE. There were pending buy orders for a combined 1.02 million shares on both the exchanges.

Since January 25, in past nine trading days, the stock plunged 62% from Rs 505 after the Vakrangee had purchased two million shares of PC Jeweller for a little over Rs 1.12 billion through an open market transaction.

There was news article & market rumours alleged the Company being investigated for price and volume manipulation.

Vakrangee on February 3 had clarified that it has not received any communication from market regulator investigating an alleged share price and volume manipulation.

“Vakrangee would like to highlight that we have not received any communication either from Stock Exchanges or Security Exchange Board of India (SEBI). The rumours of involvement of Company in price and volume manipulation are completely baseless and factually incorrect,” the company said in clarification on News Article & Market Rumours alleging the Company being investigated for price and volume manipulation.

The Company has treasury fund of more than Rs 15 billion. We had done Direct Equity Investments in PC Jeweller. Post this investment, we received feedback from our investors Community to avoid any direct equity investment, Vakrangee said.

Keeping this in mind, we have released the Treasury Investment Policy w.e.f. January 30, 2018 which states that we will not do any further direct equity investments, it added.

Meanwhile, the board of directors of the company is scheduled to meet on Monday, February 12, 2018 to review and approve Capital Allocation Policy of the Company.