PC Jeweller Ltd. has announced key corporate actions, including a stock split and the issuance of convertible warrants to promoter entities. These steps were approved recently through shareholder and board resolutions.
PC Jeweller Ltd. has fixed Dec. 16, 2024, as the record date for its upcoming stock split. This decision aims to enhance the liquidity of its shares and make them more accessible to retail investors. The stock split involves reducing the face value of each equity share from Rs. 10 to Rs. 1, increasing the total number of shares from approximately 46.5 crore to 465.4 crore. This move was approved by shareholders on Nov. 21 through a postal ballot, and the company is required to execute it within 45 days of approval.
In its official statement, the company noted that the split aligns with its goal of encouraging greater participation from retail investors by making shares more affordable
In a related development, PC Jeweller’s board approved the allotment of 11.5 crore fully convertible warrants to promoter group entities in September 2024. These warrants, valued at Rs. 56.20 each, amount to a total of Rs. 646 crore. The allotment will be executed on a private placement basis to New Track Garments Pvt. and Balram Garg, two promoter entities.
The warrant holders are required to pay 25% of the issue price upfront, with the remaining 75% payable within 18 months of allotment. Upon full payment, the warrants will be converted into equity shares, further enhancing the company’s capital base.
PC Jeweller Ltd. specialises in the manufacturing, sale, and trading of gold jewellery, diamond-studded jewellery, and silver items, catering to diverse geographical markets. The company operates a robust export business for gold jewellery on a B2B model through dealers based in the Gulf region, facilitated by firms in Dubai. Additionally, the company employs an in-house team of designers to create unique and innovative jewellery designs for its clients.
The stock of PC Jewellers currently trades at Rs.162.10 per share. The stock has delivered returns of 3.3% in the past month. At the same time, it has given attractive returns of 450% over the past year.
Conclusion: PC Jeweller Ltd. has outlined plans to restructure its equity base through a stock split. The necessary resolutions approved these actions, which are set to proceed according to the stipulated timelines.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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