PC Jeweller share at 5% upper circuit as board okays stock split, fundraise

PC Jeweller share price: Jewellery maker PC Jeweller share was locked in the 5 per cent upper circuit at Rs 186.80 per share on Tuesday, October 1, 2024.

PC Jeweller share price hit upper circuit after announcing that the board has approved the stock split and fundraising plan via warrants.

The company will conduct a stock split in a 1:10 ratio, converting each existing share with a face value of Rs 10 into ten shares with a face value of Rs 1 each.

In an exchange filing, PC Jeweller said, “The Board of Directors of the Company at its meeting held today i.e. September 30, 2024, inter-alia, has considered and approved the Sub-division / split of each equity share of face value of Rs 10 (Rupees Ten Only) each, fully paid-up, into 10 (Ten) equity shares of face value of Rs 1 (Rupee One Only) each, fully paid-up, by alteration of Capital Clause of Memorandum of Association of the Company, subject to the approval of Members of the Company.”

The ‘Record Date’ for sub-division / split of existing equity shares will be intimated in due course, PC Jeweller said.

A stock split occurs when a company divides its current shares into a larger number of shares, effectively lowering the price of each individual share. However, the overall value of all shares combined, known as the company's market capitalisation, remains unchanged.

Additionally, the board of the company has also approved fundraising worth Rs 646.30 crore via warrants. 

In a separate filing, PC Jeweller said, “Pursuant to the approval of Members in the Extra-Ordinary General Meeting held on August 8, 2024 and ‘In-Principle Approvals’ received from BSE Limited and National Stock Exchange of India Limited, allotment of 11,50,00,000 (Eleven Crore Fifty Lakh) Fully Convertible Warrants (“Warrants”) by way of preferential allotment on private placement basis to two of the Proposed Allottees belonging to Promoter Group category, at an Issue Price of Rs 56.20 per Warrant.”

PC Jeweller about 

PC Jeweller engages in the manufacturing, trading, and sale of gold, diamond, and silver jewellery, catering to various markets. The company has developed several jewellery collections, such as Anant, Dashavatar, Bandhan, Amour, and the Wedding Collection, showcasing a diverse range of offerings.

PC Jeweller's product lineup includes an extensive selection of physical jewellery, featuring items like rings, earrings, mangal sutras, coins, chains, pendants, and bracelets. 

Additionally, the company has introduced a digital gold investment platform, allowing customers to invest in 24K gold with a minimum amount of Rs 100. 

This digital gold can be redeemed for physical jewellery or gold coins, enhancing accessibility for investors.

The market capitalisation of the company is Rs 8,693.74 crore, according to BSE. The company falls under the BSE SmallCap category. 

At 10:39 AM, shares of PC Jeweller remained locked in the 5 pe recent upper circuit. In comparison, BSE Sensex was trading 0.13 per cent lower at 84,190.23 levels.