MUMBAI: P C Jeweller in a letter to National Stock Exchange (NSE), where its shares are listed, said the decision to withdraw the share buyback on July 14 was not in violation of Buyback Regulations.
NSE had earlier sought clarification on the issue from the company.
It said regarding the buyback, the company, being a listed company, had followed the Act to the extent applicable and as well had with the Buyback Regulations.
To defend is stand, the company quoted the regulation that, “the company shall not withdraw the offer to buy-back after the draft letter of offer is filed with the Board or public announcement of the offer to buy-back is made.”
The company went on to justify its act by stating that in its reply to NSE the company had intimated the exchange regarding withdrawal of Buyback vide its letter dated July 13, 2018 i.e., and it was before making Public Announcement in accordance with Regulation 8( 1) of the Buyback Regulations or filing of draft letter of offer with SEBI.
“As till the date of withdrawal of Buyback, i.e. July 13, 2018, neither Public Announcement of the offer to buyback was made nor the draft letter of offer was filed with SEBI, hence, this withdrawal is in accordance with the Regulation 19(1) (d) of the Buyback Regulations as well as the Act,” the company explained in its clarification letter to NSE.
PC Jeweller stock had crashed nearly 26 percent on Monday after the company decided to withdraw the proposed buyback of shares worth Rs 424 crore and it was reported that the withdrawal of buyback was prompted by the failure to get approval from its bankers.