PC Jeweller to buy back shares worth ~4.24 bn

P C Jeweller on Thursday announced its board has approved buy-back of shares worth ~4.24 billion amid a sharp plunge in stock price in recent weeks. The shares will be bought back at ~350 per unit, which is 67 per cent higher than the closing price of ~209 apiece on the BSE on Thursday. Promoters will not participate in the buy-back process. In a regulatory filing, the jeweller said the board at its meeting held on Thursday considered and approved the buy-back of up to 1,21,14,286 fully paid-up equity shares of ~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 ~350 per equity share, for an aggregate amount not exceeding ~4.24 billion, 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 ~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 52week high of ~600.65 apiece on January 16, 2018.

In less than four months, the stock touched a 52-week low of ~95.05 apiece on May 3.

The company has been maintaining that its fundamentals remain strong.