Jewellery Stock In Focus: Promoters Pump Rs 216 Cr, Holding Jumps To 41%

Following the conversion of fully convertible warrants, PC Jeweller Limited has notified stock exchanges of a major equity issuance. The company's board, by a circular decision dated January 31, 2026, approved the allotment of 51.24 crore equity shares upon the conversion of 5.12 crore warrants owned by promoter group entities. This action is a significant step toward bolstering the company's promoter stake and capital structure.

After the number of shares, face value, and premium had been modified to reflect the sub-division (stock split) of equity shares that took effect on December 16, 2024, the conversion was completed. One equity share worth Rs 10 was split into ten equity shares of Rs 1 each under this subdivision. As a result, the equity shares issued on conversion now have a face value of Rs 1 per share and rank pari-passu with the existing equity shares of the firm.

At a conversion price of Rs 42.15 per warrant, the corporation was paid a total of Rs 216.00 crore, or 75% of the issue price per warrant. Following this allotment, PC Jeweller's paid-up equity share capital has grown from Rs 739.70 crore, comprising 739,70,44,855 equity shares of Rs 1 each, to Rs 790.95 crore, comprising 790,95,13,455 equity shares of Rs 1 each. This indicates the incorporation of the freshly issued shares into the company's capital structure.

The agreement comprises three promoter group enterprises. Balram Garg (HUF) contributed Rs 109.52 crore by converting 2,59,84,560 warrants into 25,98,45,600 equity shares. Pooja Garg contributed Rs 56.48 crore by converting 1,33,99,900 warrants into 13,39,99,000 equity shares. New Track Garments Private Limited contributed Rs 50.00 crore by converting 1,18,62,400 warrants into 11,86,24,000 equity shares. Before accounting for the stock split, 5,12,46,860 warrants were converted into 51,24,68,600 equity shares at an issue price of Rs 56.20 per warrant.

Promoter stake has significantly increased, according to the post-allotment shareholding pattern. 36.85% of the company's equity was held by promoters and promoter group entities prior to the preferential issue. After the conversion of warrants, promoter stake has grown to 40.94%, while public shareholding has fallen from 63.15% to 59.06%.

Additionally, the company explained that after accounting for the stock split, fully paid-up equity shares were issued at an effective price of Rs 5.62 per share, including a premium of Rs 4.62 per share.

Following the above announcement, the shares of PC Jeweller ended 0.97% higher at Rs 10.38 apiece with a market cap of Rs 7,606.98 Cr as of 2nd February, Monday. The stock reached a 52-week-high of Rs 19.65 on (07/07/2025) and a 52-week-low of Rs 8.66 on (30/12/2025).