The PC Jeweller stock rose over 37% in two sessions after rise in activity of futures and options segment last week. Amid volatility and downside in the stock, two huge derivatives positions were taken on the stock on July 19, according to a report in The Economic Times.
On July 18, one client position for 4.96% of market wide position limit (MWPL) existed. On July 19, two more positions with 4.77% and 3.3 percent of MWPL each were added.
The stock rose 19.5% to 84.7 after fresh positions in the derivatives segment were added.
On July 19, the stock closed at 70.85 level. Today, the stock hit an intra day high of 97.40 level, translating into a rise of 35.49% in two sessions on the BSE.
At 1:43 pm, the stock was trading 16.24% higher at 95.20 level on the BSE. It opened with a gain of 15.32% today.
The stock is down nearly 80% since the beginning of this year and nearly 63% during the last one year.
On July 16, 2018, the stock fell over 28% in trade to 86.10 after the firm said it was withdrawing an offer related to buyback of equity shares.
The stock closed 25.89% or 31 points lower at 88.90 level on the same day.
On May 10, 2018, the PC Jeweller board announced a share buyback worth Rs 424 crore, at a price of Rs 350 per unit, 67 percent higher than the closing price of Rs 209 on previous day.
In a quarterly update (Q1 FY19) to the exchanges on July 10, the firm is continuously gaining market share. "The company has continued to gain market share in the domestic jewellery market. It had set an internal target of 20 per cent QoQ growth in Q1 and even in a subdued industry scenario has almost achieved the same."
Its promoter Padam Chand Gupta reduced his stake to 22.93% in the quarter ended June 2018 compared with 25.55% stake for quarter ended March 2018.
In the quarter ended June, promoter's stake was down to 57.61 per cent from 60.24 per cent.
140 foreign portfolio investors held 19.09% stake or 7.53 crore shares in the firm for the quarter ended June 2018, compared with 237 holding 12.31 crore shares or 31.22% stake in the firm for the quarter ended March 2018.
LIC, too, cut its stake to 1.76 per cent for the quarter ended June 2018 from 1.93 per cent in March 2018.
Written and edited by Aseem Thapliyal