Delhi-based PC Jeweller PLC (LON:PCJEWELLER) has seen its share price plummet following cancellation of a share buy-back it proposed in May.
The firm’s share price has dropped Rs 30.95 or 25.81% since markets opened this morning, after they announced at 10am in a BSE filing that it was to cancel its buy-back of 12.1 million shares with immediate effect.
A PC spokesperson said the company withdrew from the buy-back, “in view of the non-receipt of the requisite NOC”. The Rs 424 million buy-back did not go ahead because the firm did not receive the required No Objection Certificate from its bankers.
When the buy-back was agreed on May 10th, the price per unit was Rs 350 per share, Rs 141 higher than the Rs 209 closing market valuation on the 9th of May.
Mid-morning, the PC share price dropped to its lowest point since December 2014, with its largest intraday dip since May. Analyst estimates on PC stock are equally distributed between ‘Overweight’ and ‘Buy’ stances.
