PC Jeweller CEO Arrest India
Balram Garg, Managing Director at PC Jeweller Limited, in an exclusive talk with Zee Business, informed that the stocks are falling because the Fidelity, which took 9.5 per cent stake of the company in past, has sold off certain percent of it.
The Jeweller has denied reports that its CEO/ Managing Director has been arrested, as scrutiny of the Indian diamond jewellery retailer has intensified amid a major slump in its share price.
Balram Garg denies link with Vakrangee, he confirmed that promoters are not going to participate in case of a share buyback event.
BTVI media reported late Thursday that the Central Bureau of Investigation in India had arrested Balram Garg, the jeweler’s CEO, as part of a probe into his dealings with politicians.
It also alleged a connection between Garg and Mehul Choksi, the managing director of Gitanjali Gems, which is under investigation over bank fraud.
However, that report was incorrect, Sanjeev Bhatia, PC Jeweller’s chief financial officer, said in a statement later Thursday.
Garg has already appeared on television for a live interview to clarify the situation since the report emerged, Bhatia noted.
Bhatia also described the arrest claim as a damaging rumor in a separate interview.
Delhi-based PC Jeweller’s stock has plummeted 76% since the beginning of the year, with a 62% drop since last Tuesday.
Shares fell 9% in early trading Thursday, but recovered following the company’s reassurances, ending the day 10% higher than they started.
Possible reasons for the slump included reports of links to Vakrangee, a service provider that the Securities and Exchange Board of India has been investigating for alleged stock manipulation, according to a report in Business Today.
PC Jewellers chairman Padam Chand Gupta has given away some of his stock to family members, raising investors’ concerns that he would continue to offload shares.
“We do not find any justification or reason behind the decrease in the stock price of equity shares of the company today,” Bhatia added in his statement.
We would like to assure our investors, shareholders and other stakeholders that there is nothing wrong with the company and its operations, the fundamentals of the company remain strong, and it continues to move ahead on a path of growth.
This is something that has created some more selling pressure. He also added rumors are also a reason for the downfall.
PC Jeweller started operations in April 2005 with one showroom at Karol Bagh, New Delhi and is today one of the fastest growing jewellery retail chain with 94 showrooms across 74 cities and 20 states.
Backed by strong promoter team, professional management and a reputed board, the company has followed meticulously designed business plan, believed in speedy execution with careful optimism over the years.
PC Jeweller Limited (BSE: 534809) started operations in April 2005 with one showroom at Karol Bagh Delhi and 94 showrooms across India. It is a first generation business promoted by two brothers- Padam Chand Gupta and Balram Garg. The company however, had a vision of expanding its presence in the retail segment.
It has accordingly been opening showrooms at regular intervals and today has strength of 94 stores spread over 74 cities.
PC Jeweller engages in the manufacture, export, wholesale, and retail of jewelry in India. It offers gold and diamond jewelry. The company’s business model consists of opening large format, stand alone stores at high street locations. Its stores stock a wide range of jewellery across all price points, with an increasing focus on diamond jewellery. The company sells only hall marked jewellery and certified diamond jewellery.