Record Date for 1:10 Stock Split of PC Jeweller: Will You Be Eligible?

PC Jeweller Ltd is a leading player in India’s organised jewellery retail sector, offering a wide range of jewellery that includes gold, diamond, and precious stone-studded pieces, as well as silver articles. Catering to diverse customer needs, its collections range from wedding jewellery to party and daily wear.

As of March 31, 2024, the company operates 60 showrooms, including six franchisee outlets, and four manufacturing units spread across 12 states and three union territories in India. This extensive network underscores its prominence in the jewellery market.

Remarkable Share Price Growth

Over the past year, PC Jeweller’s share price has witnessed an exceptional rise of 409.52%. This performance has drawn significant attention from investors, especially with the announcement of its 1:10 stock split, scheduled for December 16, 2024, as the record date.

What is a 1:10 Stock Split?

A stock split is a corporate action where a company divides its existing shares into multiple shares, maintaining the overall market capitalisation.

In the case of a 1:10 stock split:

• Each existing share will be divided into 10 shares.
• The face value of each share will reduce accordingly, while the total value of an investor’s holdings remains unchanged.

For example, if a shareholder owns 100 shares of PC Jeweller before the split, they will hold 1,000 shares after the split. However, the price per share will adjust in proportion to the split ratio.

Purpose of a Stock Split

Stock splits are commonly executed to enhance:

1. Liquidity: By increasing the number of shares in the market, trading activity can rise.
2. Affordability: A lower share price makes the stock accessible to a larger pool of investors, especially retail participants.

Importance of the Record Date

The record date for a stock split is critical, as it determines the eligibility of shareholders to receive the additional shares resulting from the split. Investors holding shares as of the record date—December 16, 2024, in this case—will benefit from the 1:10 split.

Impact on Market Capitalisation

It is essential to note that a stock split does not affect a company’s market capitalisation. The total value of the company remains the same, as the increase in the number of shares is balanced by a corresponding decrease in share price.

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.