PC Jeweller share price recovers 32% after Zee Business speaks to MD Balram Garg
PC Jeweller MD Balram Garg said the company has no connection with IT firm Vakrangee. Reports of linkage with Vakrangee had caused a heavy selling in the stock in February. Vakrangee share price is on a selling spree, hitting lower circuit of 5 per cent for the last eight sessions in a row.
PC Jeweller share price recovered a whopping 32 per cent from its intraday low after jewellery firm's Managing Director Balram Garg denied reports of his arrest and Central Bureau of Investigation (CBI) conducting searches at the jewellery firm’s Nagpur stores. At 2:15 pm, the stock was trading at Rs 114.55, up 3.5 per cent on the BSE. The stock had tanked as much as 14 per cent to hit its 52-week low of Rs 95 in the morning trade. After Garg's clarification, the stock rallied to hit an intraday high of Rs 125.70. "We don't know who is spreading these rumours. No investigation is going on. We have not received any notice from CBI, Sebi or other agencies. Keep faith in the company. Business is going on smoothly the way it was before the stock crash," said Balram Garg exclusively to Zee Business.
"Heavy stake sale by Fidelity may have caused the stock to crash," he added. Notably, Fidelity Magellan Fund sold nearly 2.5 per cent stake in PC Jeweller last week. "Fidelity managed funds have sold 46,88,466 shares (~1.19 per cent stake) on April 27, 2018 taking the total holding to 7.04 per cent. Fidelity sold its shares in open market," informed the company in a regulatory filing.
— Zee Business (@ZeeBusiness) May 3, 2018
Balram Garg also said PC Jeweller has no connection with IT firm Vakrangee. Reports of linkage with Vakrangee had caused heavy selling in the stock in February. Vakrangee share price is on a selling spree, hitting lower circuit of 5 per cent for the last eight sessions in a row.
Meanwhile, PC Jeweller is all set to take a call on buyback in its board meeting scheduled for May 25, 2018. "We may conduct the board meeting prior to May 25," informed Garg to Zee Business.
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On gifted shares to a family member by one of the promoters Shri Padam Chand Gupta, Garg clarified, the family member who received those shares has not sold them.
Garg assured investors none of promoter holdings have been sold or pledged. He also revealed that promoters will not participate in any buyback.