Shares of PC Jeweller recovered 32% from day’s low after the company’s CEO Balram Garg denied reports of CBI investigation and connections with Vakrangee Ltd. Notably, Vakrangee had reportedly purchased two million shares of PC Jeweller for a little over Rs 112 crore through an open market transaction, after which media reports said that SEBI was investigating an alleged share price and volume manipulation.
However, in an interview to CNBC TV18, Balram Garg, CEO of PC Jeweller said that they have no connection of any sort with Vakrangee. The stock also witnessed pressure on reports of a gift of shares by promoter Padam Chand Gupta to one of his family members. Balram Garg clarified that a transfer of share via gift is not an Inter Se transfer between promoters.
In the same interview, Garg pointed out that market regulator SEBI has not questioned the company with respect to fall in share prices. He also denied receiving any notice from any investigative agency and said that the company has not been questioned by CBI.
Notably, as of yesterday, shares had eroded more than four-fifth of its value from its record high of Rs 600.65 in January-18. The shares zoomed to an intra-day high of Rs 126.8, as compared to a day’ low of Rs 94.55.
In an interview to ET Now, Sanjeev Bhatia, the CFO of PC Jeweller that Fidelity selling stake in the company has mounted pressure on the shares. Fidelity cut its stake by 2.54 per cent in PC Jeweller last week. Sanjeev Bhatia noted that there have been a lot of rumours doing the rounds in the last week. He reiterated that the company has no connection with Vakrangee Ltd.
PC Jeweller is primarily engaged in the business of manufacture, retail and export of jewellery. The company offers a range of products including 100% hallmarked gold jewellery, certified diamond jewellery and other jewellery, including silver articles, with a focus on diamond jewellery and wedding jewellery wear.