Shares of PC Jeweller were locked in the 5% upper circuit on Tuesday, October 1, after the company announced a 1:10 stock split. This marks the fourth consecutive session in which the stock has reached the upper circuit limit. The share price opened at Rs 184.70 and extended gains to s 186.80, also achieving a 52-week high.
Details of the Stock Split
In a stock exchange filing on Monday, PC Jeweller revealed that its Board of Directors approved the stock split on September 30, 2024. The split aims to enhance liquidity and make shares more affordable for retail investors.
Each fully paid-up equity share with a face value of Rs 10 will be subdivided into 10 shares of Rs 1 each, increasing the total number of shares from approximately 46.5 crore to 465.4 crore.
Stock Performance of PC Jeweller
Over the past year, PC Jeweller’s share price has surged by 563.12%, and it has risen 246.4% so far this calendar year. The stock has delivered impressive multibagger returns of 241.6% and 225% over the last three and six months, respectively.
In September alone, the stock rallied by 60%. As of September 30, it was trading at its highest level since May 2018, having reached a record high of Rs 600.65 on January 16, 2018. The company’s current market capitalization stands at Rs 8,693.74 crore, according to BSE data.
Preferential Allotment of Convertible Warrants
Additionally, the board approved the preferential allotment of 11.5 crore fully convertible warrants on a private placement basis to two promoter group entities—New Track Garments Pvt. Ltd. and Balram Garg (HUF)—at an issue price of Rs 56.20 per warrant.
This move is expected to raise Rs 646 crore, with an initial 25% subscription received upfront. The remaining 75% must be paid by the promoters within 18 months from the date of allotment for the warrants to be fully converted into equity shares.
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