PC Jeweller tumbles after withdrawal of share buyback

PC Jeweller lost 18.67% to Rs 97.55 at 09:53 IST on BSE after the company announced withdrawal of buyback offer with immediate effect as it did not get NOC from bankers.

The announcement was made after market hours on Friday, 13 July 2018.

Meanwhile, the S&P BSE Sensex was down 17.67 points or 0.05% at 36,523.96.

On the BSE, 16.53 lakh shares were traded on the counter so far as against the average daily volumes of 13.37 lakh shares in the past two weeks. The stock had hit a high of Rs 108 so far during the day. The stock had hit a 52-week low of Rs 93.35 in intraday trade today, 16 July 2018. The stock had hit a record high of Rs 600.65 on 16 January 2018.

PC Jeweller said that in view of the non-receipt of the requisite NOC from the company's bankers, the board of directors has decided to withdraw the buyback offer with immediate effect.

It may be recalled that PC Jeweller had on 10 May 2018 announced the proposal for buyback of upto 1.21 crore equity shares, comprising of 3.07% of the total paid-up equity capital of the company, for an aggregate amount not exceeding Rs 424 crore, at Rs 350 per share, on a proportionate basis through the tender offer route.

PC Jeweller's net profit rose 7.48% to Rs 118.28 crore on 2.42% fall in net sales to Rs 2103.22 crore in Q4 March 2018 over Q4 March 2017.

PC Jeweller is one of the leading jewellery companies in India in the organized jewellery retail sector.

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