Shares of PC Jeweller today hit over 3-year low as the company has cancelled the buyback offer. The stock plunged as much as 28 per cent to Rs 86.10, its lowest since December 2014. The stock posted biggest intraday percentage loss since early May.

The company had on Friday withdrawn a proposal to buy back up to 12.1 million shares worth Rs 424 crore. The board of directors decided to withdraw the offer with immediate effect after the company failed to receive the requisite no-objection certificate from its bankers, the company had said in its filing to the stock exchanges.

The company had to take bankers’ permission as part of the standard loan covenants procedure, PC Jeweller had said in another filing to the exchanges.

On May 10, PC Jeweller had approved buyback of up to 1.21 crore shares, or 3.07 per cent stake, at Rs 350 apiece. That was at a premium of 67.5 per cent to the prevailing stock price. The company stock had fallen 73 per cent this year up to last close.

(With inputs from Reuters)

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