NEW DELHI: PC Jeweller on Friday said that it was withdrawing a May 10 proposal wherein it was announced that the jeweller will buy back shares worth Rs 424 crore from the shareholders.In view of the non-receipt of the requisite NOC from the company's bankers, the board of directors at its meeting held today has decided to withdraw the aforesaid buyback offer with immediate effect, the company said in a regulatory filing on post market hours on Friday.Earlier on May 10, 2018 the jeweller had approved the buyback up to 1,21,14,286 fully paid-up equity shares of Rs 10 each, comprising of 3.07 per cent of the total paid-up equity capital of the company at a price of Rs 350 per equity share for an aggregate amount not exceeding Rs 424 crore.The shares of the company have fallen over 40 per cent since the buyback announcement in May.
The stock was closed at Rs 119.95 on Friday against Rs 201.15 on May 11, 2018.In past few months, news about one of the company promoters gifting shares to undisclosed relatives has buffeted the stock of late.
Allegations about PCJ's undisclosed business ties with Vakrangee, which is under Sebi probe for alleged price and volume manipulation, have further worried investors.
However, the management has denied all such allegations and issued clarifications, saying all is well.