PC Jeweller cracks 21% on the U-turn buyout

PC Jeweler broke nearly 26 percent on Monday as the board of directors decided to withdraw its offer to repurchase 12.1 million shares with immediate effect.

The opening certificate was 108 rupees and was respectively 108 and 86.10 rupees, closing the day at 88.90 Rs, down 25.89%.

The company announced Friday that it was withdrawing a May 10 proposal under which the jeweler was supposed to buy back shares worth Rs 424 crore from shareholders.

In a clarification to the BSE, the company said: "Accordingly, after the board approved the repurchase, the company had approached its bankers to obtain the required permission."

The company added that the bankers appreciated the fact that the company is honoring its commitment to reduce its interest costs as well as the banks' exposure at the time of reporting the annual results. However, they recommended that, for the current year, the company continues to focus on growth and gives priority to reducing its interest costs as far as possible.

"As a result, they did not approve the proposal of Rs 424 crore out of cash liquidity company their letter dated July 12, 2018, and did not give the required number to the company for its bid for redemption, "PC Jeweler said in a release.

Due to the non-receipt of the required Nc from the company's bankers, the Board of Directors decided, at its meeting, to withdraw the above-mentioned buy-back offer with immediate effect, a indicated the company in a regulatory notice. Friday.

Earlier on May 10, the jeweler had approved the redemption up to 1,21,14,286 fully paid up shares of Rs 10 each.