Shares of PC Jeweller remained under massive selling pressure for the eighth straight session today, plunging nearly 24 per cent following stake sale by Fidelity managed funds through open market transaction.
The stock crashed 23.69 per cent to end at Rs 110.65 on BSE. During the day, it nosedived 28.68 per cent to Rs 103.40 -- its 52-week low. It was close to its lower circuit of Rs 101.50.
On NSE, shares of the company dived 23.42 per cent to close at Rs 110.65.
In last eight trading sessions, the stock has plunged by nearly 63 per cent, wiping-out Rs 7,364.46 crore from its market valuation.
"The fundamentals of the company are strong. Last week, Fidelity managed funds sold about one crore shares," said Balram Garg, Managing Director, PC Jeweller.
Fidelity managed funds in total had 3.77 crore shares in the company equivalent to 9.6 per cent stake, he said, adding that after the sale of one crore shares their shareholding came down to around 7 per cent.
"In this week also, there were deliveries of four crore shares on BSE and NSE. So we assume that Fidelity managed funds have sold their shares which might have put pressure on the stock," Garg added.
In a filing to BSE today, the company said that FMR LLC, a fund managed by Fidelity International, on Friday sold nearly 47 lakh shares of PC Jeweller through open market transaction.
The stock is down 81.6 per cent from its 52-week high of Rs 600.65 touched on January 16, this year.
PC Jeweller Ltd had on April 29 informed BSE that a meeting of the board of directors of the company will be held on May 25, 2018, to consider the proposal for buy back of fully paid-up equity shares, as also consider recommendation of dividend, if any, on equity shares for the financial year 2017-18.
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