Taking the imposition of long-term capital gains tax seriously, bears went on the rampage at the bourses, but their special focus was on the shares of PC Jeweller and Vakrangee.

Shares of PC Jeweller plunged almost 55 per cent in early Friday trade on the back of the share price move in Vakrangee, which has been hitting the lower circuit for the last five consecutive days.

PC Jeweller did not attract the circuit breaker, as it is trading in derivative segment too. Its share plunged to a low of ₹217.95 on the NSE in early session but recovered sharply to touch a high of ₹474.90 before closing at ₹364.25, still down 25 per cent against the previous day’s close of ₹484.30.

The stock recovered from the day’s lows after the management clarified that it remains very strong on fundamentals and the company’s expansion plans are on track as planned. “We are moving ahead as per our laid down business plans of opening new stores and working on launching new collections. The company continues to witness very good footfalls and sales in this quarter as well,” it said in a clarification to the stock exchanges.

PC Jeweller further said none of the company’s promoters has sold any stake in the firm or pledged its shares as collateral with any institution.

January 25 announcement

Earlier, on January 25, Vakangee had announced that it bought 25 lakh shares of PC Jeweller at ₹561.71 apiece, translating into a deal worth of ₹112.3 crore. However, exchanges details did not show from whom the shares were bought by the company.

In a clarification to the exchanges, Vakrangee on Friday said it is functioning on strong corporate governance standards and all events/information having a bearing on the operations/performance of the company are furnished in ‘timely and properly’ fashion.

Vakrangee sent the clarification to the exchanges after they had sought a reply from the company about speculation that it had bought some of the promoter’s stake in PC Jeweller on January 25.

“All announcements are being disseminated to the stock exchanges from time to time. We wish to inform that all information furnished by the company is in public domain,” Vakrangee said in a filing to the stock exchanges, and added that promoters have increased their stake over a period of time which shows their commitment to the growth and development of the company and its stakeholders.