PC Jeweller share price on Monday fell 30% to a 4-year low after the New Delhi-based jewellery maker cancelled its Rs 424 crore share buyback offer owing to bankers denial with respect to cash flowing out of the company. PC Jeweller informed on Friday that for the current year its bankers have recommended that company should continue to focus on growth and give priority to further reduce its interest expense to the maximum extent possible. The stock of PC Jeweller was the biggest loser among the pack of ‘A’ group on BSE on Monday.
According to a stock exchange filing by PC Jeweller, the company said that bankers haven’t approved the proposal of Rs 424 crores of cash flowing out of the Company and have not given the required NOC to the company for its buyback offer. Following the development, PC Jeweller shares crashed nearly 30% to a 4-year low share price level of Rs 83.95 on NSE. This is the lowest level since 2014. PC Jeweller shares hit a closing low of Rs 82.68 (stock price adjusted with 1:1 bonus issue) on 27 August 2014. The stock of PC Jeweller started down 10% at Rs 107.95 on NSE today. PC Jeweller shares on BSE tanked 22.16% to Rs 93.35 after opening 10% lower at Rs 108.
“The bankers appreciated the fact that the company is keeping its commitment of reducing its interest cost as well as bank exposure made at the time of declaration of annual results,” PC Jeweller said in a statement.
Earlier in May this year, PC Jeweller announced a share buyback offer of Rs 424 in which the company said that it will be repurchasing about 1.21 crore equity shares at Rs 350 per share. In the current year 2018, the stock of PC Jeweller has lost about 74% to Rs 119.9 from a share price level of Rs 456.75 as on 29 December 2017. Notably, PC Jeweller share price hit a record high of Rs 600.65 on 16 January 2018 on NSE.