Exclusive! PC Jeweller MD Balram Garg fights off arrest, raids, CBI talk, says 'have faith in us'
Balram Garg, Managing Director of PC Jeweller Limited said that the company's stock is falling because Fidelity, which took 9.5 per cent stake of the company in past, had sold off certain part of it recently. He said this has created some extra selling pressure on the stock.
Balram Garg, Managing Director of PC Jeweller Limited, in an exclusive talk with Zee Business, revealed that the company's stock is falling because Fidelity, which took 9.5 per cent stake of the company in past, had sold off certain part of it recently. He said this has created some extra selling pressure on the stock. However, he also blamed certain 'rumours' as a big reason behind the plunging stock. Here are edited excerpts of the exclusive talk"
Q: Rumours are going around that Balram Garg of PC Jeweller has been arrested and PC Jeweller is being raided at multiple locations.
A: See, I can't comment on rumours. I really don't know where they come from and what is the basis of that. PC Jeweller is working in the same way as it was functioning till date. I am here and talking to you.
Q: Do you want to say something on the reports of raids?
A: The reports are completely wrong. Why will someone raid us or our company?
Q: Have you received any notice from any investigative agency including SEBI and CBI?
A: No, have not received any such notice.
Q: Talk is there that your company has some relationship with Vakrangee. The relation is also a matter of concern in the market. What really is the connection with Vakrangee?
A: We have ended the connection with Vakrangee and at present, there is no connection with it.
Q: Today, the share prices of PC Jeweller has gone down below Rs 100 and it is a matter of concern for the investors. Will you like to say something to your investors?
A: I would just like to say that don't go by the rumours and have faith in us as you always did.
Q: PC Jeweller stock has seen a sharp fall or sharp correction over the last few days. Is everything fine with the company? As MD of PC Jeweller, do you want to give some clarification on the fall?
A: See, we have seen that Vakrangee, which was holding 9.50 per cent stake in the past, has sold a certain percentage of it and I feel the sharp fall is related to the same. That has also created some more selling pressure. Such falls are always visible in every company when such big holdings are sold off.
Q: But the matter of concern is that they have sold off just 1 to 1.25 per cent of their holdings. Did you have any talk with Fidelity to know the reason behind such an act?
A: No, we didn't have any talk on the issue but I can say that they would have sold a certain percentage of their holding because it was an active week.
Q: Can you say that none of the promoters have sold their stakes in PC Jeweller in last 10-15 days?
A: Yes, I can say that none of them has sold any stake in the company.
Q: Don't you think the date for the board meeting, which is May 25, is too late? Why don't you call a board meeting in next 2-3 days and go for a buyback of the stakes?
A: We are thinking about it now.
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Q: I would like to keep a certain thing from the side of small investors, whenever you announce the buyback, maybe via a tender or an open market purchase and it is that doesn't allow the promoters to participate in the buyback event. It will help in building the confidence of your investors. Can I hope that you will go according to that request?
A: I can confirm this that the promoters are not going to participate in it.
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