1:10 Stock Split Ahead: Jewellery Stock Allots 39,87,900 Shares On Conversion of Warrants

PC Jeweller's stock wrapped up on Friday at Rs 163.66 a share, up 4.76%. The stock came under attention after the Board of Directors of the company, in a resolution issued by circulation on November 29, 2024, awarded 39,87,900 equity shares with a face value of Rs 10 each. This was done after 39,87,900 warrants were converted to five allottees who were classified as "Non-Promoter, Public Category." The remaining amount, which came to Rs 16,80,89,985 at the rate of Rs 42.15, was then received.

The conversion of 39,87,900 warrants into 39,87,900 fully paid-up equity shares of Rs 10 each at an issue price of Rs 56.20 each (including a premium of Rs 46.20 per share) was intimated on the conversion of securities or on lapse of the tenure of the instrument by PC Jeweller. Pursuant to the exercise of their rights of conversion of warrants into equity shares in accordance with the provisions of the SEBI, PC Jeweller's paid-up share capital after allotment was Rs 540,08,77,680 (comprising of 54,00,87,768 equity shares of Rs 10 each).

Following the conversion of warrants, PC Jeweller has concluded the distribution of more than 3.63 crore equity shares to six allottees. In accordance with an exchange filing, the board decided on Tuesday to hand over 3,63,75,000 (3.63 crore) equity shares with a face value of Rs 10 each to six non-promoter, public category allottees upon the conversion of 3,63,75,000 warrants. This will happen after they receive the remaining sum of Rs 153.32 crore at the rate of Rs 42.15 per warrant, which is 75% of the issue price per warrant, and employ their right to convert the warrants into equity shares.

According to PC Jeweller, its net profit for the second quarter, which ended on September 30, 2024, was Rs 178.88 crore compared to its net loss of Rs 138.13 crore in the year-ago quarter. In the reporting quarter, overall sales increased by 12.42% to Rs 504.97 crore in Q2FY25. In the same quarter last year, the business posted a topline of Rs 449.17 crore. The net profit for the first half of FY2025 was Rs 333.77, compared to a loss of Rs 325 crore for the six-month period that ended on September 30, 2024.

Meanwhile, leading gem and jewellery manufacturer PC Jeweller announced a record date for its first-ever stock split at a ratio of 1:10. For the purpose of dividing or splitting the company's equity shares, PC Jeweller has set December 16, 2024, as the record date. This means that one fully paid-up equity share with a face value of Rs 10 will be divided or split into ten (10) equity shares with a face value of Rs 1.