PC Jewellers issues statement on 50% decline in share price

PC Jewellers, the Delhi-based jewelry retailer, denied that there was any reason for the halving of its share price as was seen today.

It issued a statement after the company’s shares fell from around Rs 500 to Rs 217 in trading today, reportedly over worries that the company may be linked with Vakrangee, another firm that is under the scanner for allegedly manipulating its own stock. Investors were worried because Vakrangee has a tiny stake in PC Jewelers.

“The Company is not aware of reason of sudden decrease in price of equity share of the Company today,” PC Jewelers said in a statement.

“We would like to assure our investors, shareholders, etc. that the fundamentals of the Company remain strong. We are moving ahead as per our laid down business plans of opening new stores and working on launching new collections.

“The Company continues to witness very good footfalls and sales in this quarter as well.”

Separately, the company’s finance head Sanjeev Bhatia came on TV and said: “We have no business agreement with Vakrangee and none of our promoters have sold any stake in the firm.”

In its written statement, the company said: “None of our promoters has diluted its stake in the company and none of their shares are pledged as collateral with any institution.”

“The Government policies also remain very positive towards Gems & Jewellery Sector and we are very confident and bullish about future growth prospects,” it added.

Shares of the company did recover much of the lost ground after the clarifications. It has bounced back to around Rs 400, but is still down about Rs 80 over yesterday’s closing.

You can also read the full statement below.