Shares of Kalyan Jewellers India Ltd. are declining on Thursday, February 6, after promoters of the company created additional pledge on their stake.

Promoters of the company created an additional pledge on 2.5 crore shares on February 3, according to data available.

The pledge of additional shares was created in favour of KJG consulting and was for the company to issue Non-Convertible Debentures (NCDs).

With this, the total pledge in favour of KJG Consulting increased to 10.73% from 8.26%.

The company had declined last month,

after one of the company’s promoters Seetharam Trikkur Kalyanaraman pledged equity shares of the company held by him, in favour of multiple entities for various purposes.

Additionally, another one of the company’s promoters, Ramesh Trikkur Kalyanaraman, had pledged 1.7 crore shares in favour of Catalyst Trusteeship, Bajaj Finance, Aditya Birla Finance, Tata Capital and Infina Finance to avail a loan facility.

Kalyan Jewellers reported a Same-Store Sales Growth of 24% from last year during the October-December period. The company added 24 new showrooms during the quarter.

Same Store Sales Growth for the Middle East business grew by nearly to 16%.

The company intends to accelerate its Return on Capital Employed (RoCE) from current levels and also intends to use the benefits of free cash flow to reward its shareholders via dividends.

Shares of Kalyan Jewellers are trading 2.5% lower at ₹553.