NEW DELHI: Shares of PC Jeweller soared 14 per cent in Monday's trade after the company said its board will meet on May 25 to consider a share buyback proposal.A share buyback proposal suggests that the promoters feel the value the market is ascribing to the underlying business of the company is lower than what it should be.
The news put a brake on the 40 per cent slide in jeweller's stock prices in last six consecutive sessions.
The stock rose 14.3 per cent to hit a high of Rs 203.35.
On Friday, it had tanked 25 per cent to settle at Rs 178 apiece on BSE.
The stock had been declining on reports that Padam Chand Gupta, one of the two promoters, has gifted nearly 2 per cent of his 26 per cent holding in the company to an undisclosed relative.This had raised concerns whether there may be more such deals in the future leading to the sale of shares in the open market, which if it happens, would affect the share price.
A buyback proposal soothed investor nerves a bit.The stock had witnessed a sharp sell-off in February too amid speculation over the companys relations with Vakrangee, a company which, according to reports, is being probed by Sebi for stock manipulations.