PC Jeweller Ltd, a small company engaged in the gems and jewellery business, is going to be in focus ahead as the company received approval for a stock split in the ratio of 1:10, and fundraising via issuance of warrants. On October 1, PC Jewellers' share price witnessed a volatile trend, hitting a new high but also reversing its gains to end at a 5% lower circuit. PC Jeweller stock will be in focus ahead.
PC Jeweller Share Price:
PC Jewellers is a multi-bagger of 2024, with gains of nearly 236% on BSE year-to-date. On the October 1st session, the jewellery stock touched a new 52-week high of Rs 235.85 apiece, but soon after corrected in the closing bell.
The stock ended at a 5% lower circuit to Rs 169.10 apiece on BSE. The market cap is at Rs 7,869.98 crore.
Despite being a multi-bagger, PC Jeweller's return on equity is negative at 11.09%.
PC Jeweller Stock Split:
The company has announced a sub-division/stock split in the ratio of 1:10. Simply put, 1 equity share of PC Jeweller at a face value of Rs 10 each, will be sub-divided into ten equity shares with a face value of Re 1 each.
PC Jeweller said, "The Record Date for sub-division / split of existing equity shares will be intimated in due course."
The reason behind the stock split is to enhance the liquidity of the Company's equity shares and to encourage participation of retail investors by making equity shares of the Company more affordable.
The company plans to complete the stock split within 45 days from the date of approval of its Members.
This will be the first-ever stock split by PC Jewellers.
Although, PC Jewellers has carried one bonus issue in July 2017, in the ratio of 1:1. Meaning, the company issued 1 free share for existing 1 equity share.
While the company has delivered about 7 dividends since September 2013, as per Trendlyne data.
PC Jeweller Fundraising:
On September 30, the company received approvals from BSE and NSE for the allotment of 11,50,00,000 (Eleven Crore Fifty Lakh) Fully Convertible Warrants ("Warrants") by way of preferential allotment on a private placement basis to two of the Proposed Allottees belonging to Promoter Group category, at an Issue Price of ₹ 56.20 per Warrant, determined by the provisions of Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 ("ICDR Regulations"), after receipt of stipulated amount i.e. 25% of the Issue Price as subscription amount by the provisions of ICDR Regulations.
What are warrants? As per Aditya Birla Capital's website, a share warrant is a contractual document issued by a company. It gives the warrant holder the right or the option to purchase or sell the company's shares at a specific predetermined price. The trade can occur on a specified date or within a predetermined period.
About PC Jeweller:
It all started when PC Jeweller first opened its first showroom in 2005 in Karol Bagh, New Delhi with a vision to redefine elegance, allure and style in the form of stunning pieces of jewellery. At present, one of the fastest-growing jewellery retail chains having showrooms across 67 cities and 17 states.
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