Shares of the Delhi-based jewellery-maker PC Jeweller Ltd have been falling for the last seven straight days diving as much as 49% in seven days to a three-year low on Monday despite company's repetitive clarification over the sharp decline in share prices and share buyback offer.
Shares of the Delhi-based jewellery-maker PC Jeweller Ltd have been falling for the last seven straight days diving as much as 49% in seven days to a three-year low on Monday despite company’s repetitive clarification over the sharp decline in share prices and share buyback offer. The stock of PC Jeweller extended gains in the morning trades after opening up over 3% at Rs 177.9 on the back of board mulling a share buyback programme. Shares of PC Jeweller rose as high as 17.86% to a day’s high of Rs 209.7 on BSE on Monday but started falling just after touching the day’s peak. Invariably high trading volumes have been witnessed in the shares of PC Jeweller since the last three days.
Today only, at around 11:10 am, shares of PC Jeweller dropped as much as 13.55% to a 3-year low of Rs 153.7 on NSE. Shares of PC Jeweller traded at the lowest level since April 2015. The stock of PC Jeweller marked a low of Rs 152.83 on 27 April 2015 on NSE. With a steep decline in the share price in the last seven days, PC Jeweller has lost about Rs 5,670 crore in the market capitalisation. As per the 3-year low share price of Rs 153.2, PC Jeweller held a market capitalisation of Rs 6,023 crore on BSE on Monday, 30 April 2018 as against Rs 11,693 crore at the end of trades on 19 April 2018.
Unusual trading volumes were seen in the shares of PC Jeweller, up until 12:11 pm on Monday, more than 7.26 crore equity shares exchanged hands on both NSE and BSE with about 6.76 crore equity shares on NSE alone.
Earlier yesterday, PC Jeweller informed that the board will consider and approve the audited standalone and consolidated financial results of the company for the quarter and the financial year ended 31 March 2018 on 25 May 2018. PC Jeweller’s board will also consider recommending dividend on preference shares for the period from 1 April 2017 to 1 September 2017 along with a dividend (if any) on equity shares for the financial year 2017-2018. Amid all these developments, PC Jeweller will also consider a proposal of buyback of fully paid-up equity shares.
In the last reply to the clarification sought by stock exchanges on the decrease in share prices, PC Jeweller on 27 April 2018 said in an exchange filing that “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 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.”
“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. we have already opened 7 new showrooms during March 2018 and further opened 2 more showrooms during April 2018,” PC Jeweller said further. “We also confirm that none of the’ promoters of the company have pledged any of their shareholdings’,” PC Jeweller added.