P C Jeweller today announced its board has approved buy-back of shares worth Rs 424 crore amid a sharp plunge in stock price in recent weeks.
The shares will be bought back at Rs 350 per unit, which is 67 per cent higher than the closing price of Rs 209 apiece on the BSE today. Promoters will not participate in the buy-back process.
In a regulatory filing, the Delhi-based jeweller said the board at its meeting held today considered and approved the buy-back of up to 1,21,14,286 fully paid-up equity shares of Rs 10 each.
The buy-back of 1.21 crore shares comprise 3.07 per cent of the total paid-up equity capital of the company, it added.
The shares will be bought back from the equity shareholders of the company as on the record date, at a price of Rs 350 per equity share, for an aggregate amount not exceeding Rs 424 crore, it said.
The promoters and promoter group companies would not participate in the proposed buy-back.
The board also approved appointment of IDBI Capital Markets & Securities Limited and Corporate Professionals Capital Private Limited as merchant bankers for the proposed buy back offer of the company.
The buy-back of shares has been announced by the company as its stock fell sharply to its 52-week low price of Rs 95.05 hit on May 3 this year after Fidelity managed funds sold shares through open market.
P C Jeweller has more than 100 retail stores across the country.
Its scrip has witnessed a severe drubbing after touching a 52-week high of Rs 600.65 apiece on January 16, 2018.
In less than four months, the stock touched a 52-week low of Rs 95.05 apiece on May 3.
The company has been maintaining that its fundamentals remain strong.
"We would like to assure our investors, shareholders and other stakeholders that there is nothing wrong with the company and its operations, the fundamentals of the company remain strong and it continues to move ahead on growth path," the company had said in a recent filing.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)