Shares of PC Jeweller today bounced back, soaring over 16 per cent, on value buying after the management said that "the fundamentals of the company remain strong".
The stock zoomed 15.74 per cent to end at Rs 423.15 on BSE. During the day, it jumped 28.77 per cent to Rs 470.80.
On NSE, shares of the company surged 16.32 per cent to close at Rs 423.70.
In terms of equity volume, 52.41 lakh shares of the company were traded on BSE and over 5 crore shares changed hands on NSE during the day.
Shares of PC Jeweller had on Friday crashed nearly 60 per cent in intra-day trade.
The stock faced severe drubbing amid sharp fall in the shares of Vakrangee Ltd, which had purchased shares of PC Jeweller late last month.
"Vakrangee would like to highlight that we have not received any communication either from stock exchanges or Security Exchange Board of India (Sebi). The rumours of involvement of company in price and volume manipulation are completely baseless and factually incorrect," the company had said in a BSE filing on Saturday.
According to media reports, Vakrangee is being probed by Sebi for possible stock manipulation.
"Promoters have not sold any shares. Our fundamental is strong," PC Jeweller, MD, Balram Garg told PTI on Friday.
Shares of Vakrangee meanwhile, continued to face selling pressure for the sixth consecutive trading session, falling 10 per cent to Rs 236.80 on BSE.
BSE had sought clarification from PC Jeweller on Friday with reference to decrease in stock price.
In a clarification to BSE, the company had said, "We would like to clarify that we make timely disclosures of all the events, information, etc that have a bearing on the operation/performance of the company which include price sensitive information etc."
"... we would like to assure our investors, shareholders, etc that the fundamentals of the company remain strong," the filing said.
"We affirm that none of our promoters have diluted stake in the company and none of their shares are pledged as collateral with any institution," it added.
Vakrangee Ltd had on January 25 purchased 20 lakh shares of PC Jeweller for a little over Rs 112 crore through an open market transaction.
Vakrangee Ltd is a technology company based in Mumbai, that provides banking, insurance, e-governance, e-commerce, and logistics services.
The bulk deal data available with NSE showed that Vakrangee bought 20 lakh shares, amounting to 0.51 per cent stake in the jewellery major.
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