PC Jeweller approves buyback at Rs 350 a share; stock price up nearly 90% in May

The board of PC Jeweller Thursday approved a proposal to buy back 1.21 crore shares at Rs 350 a piece, which translates into a premium of 67 percent from Thursday’s closing price of Rs 209.

As per March quarter-end data, the promoters hold around 57.63 percent stake in the company. LIC holds about 1.93 percent. The board noted that the promoters and promoter group of the company will not participate in the proposed buy back in a statement to the exchange.

The stock, which had hit a low of Rs 95.05 on May 3, has more than doubled since then.

PC Jeweller rose from Rs 110.65 recorded on May 2 to Rs 209 on May 10, a rally of nearly 88 percent in just six trading sessions.

“The Company proposed to Buy Back up to 1,21,14,286 fully paid-lip equity shares of Rs 10 each, comprising of 3.07 percent of the total paid-lip equity capital of the Company, from the equity shareholders of the Company as on the Record Date, at a price of Rs 350, for an aggregate amount not exceeding Rs. 424 crore, being less than 25 percent of the total paid-up equity capital and free reserves of the Company,” PC Jeweller said in a statement to exchanges.