PC Jeweller board approved splitting each share into 10 shares.

PC Jeweller produces, trades, and sells jewelry made of gold, diamonds, and silver for a range of consumer markets. A wide variety of products are displayed in the jewelry collections that the company has created, including Dashavatar, Bandhan, Anant, Amour, and the Wedding Collection. PC Jeweller offers a wide range of tangible jewellery products, such as bracelets, coins, chains, pendants, earrings, rings, and mangal sutras. Customers can now invest in 24K gold with a minimum of Rs 100 thanks to the company’s introduction of a digital gold investing platform. The ability to exchange this digital gold for real jewelry or gold coins increases accessibility for investors.

PC Jeweller stock split:

On Tuesday, October 1, 2024, shares of jewelry manufacturer PC Jeweller were locked in the 5% upper circuit at Rs 187.07 per share. Following the announcement that the board had approved the stock split and warrant-based fundraising plan, the price of PC Jeweller’s shares surged higher. Ten shares with a face value of Rs 1 will be created from each existing share of Rs 10 through a stock split that the company will carry out in a 1:10 ratio.

The Board of Directors of the Company at its meeting held today, September 30, 2024, among other things, 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.” PC Jeweller made this announcement in an exchange filing. PC Jeweller states that when it is appropriate, the “Record Date” for the current equity shares’ subdivision or split will be disclosed.

A company that splits its existing shares into more shares does so to lower the price of each share. This is known as a stock split. Nonetheless, the market capitalization of the company—the total value of all of its shares—remains constant. The company’s board has additionally approved warrant fundraising totaling Rs. 646.30 crore.

PC Jeweller uses warrants to raise money:

The board also approved the preferential private placement allocation of 11.5 crore fully convertible warrants to two promoter group companies, Balram Garg (HUF) and New Track Garments Pvt. Ltd., at an issue price of Rs. 56.20 per warrant. With an upfront 25% subscription, these warrants, which are convertible into company equity shares, will raise Rs. 646 crore. For full conversion into equity shares, the promoters have eighteen months from the date of allotment to pay the remaining 75% of the issue price.

PC Jeweller Limited stock hits the upper circuit:

The stock of PC Jeweller Lt. is currently trading at Rs. 187.07, up 5% from yesterday in the intraday segment and also at its 52-week high following the confirmation of the stock’s impending split.

Conclusion: PC Jeweller Limited will be able to grow rapidly shortly thanks to its stock split and warrant fundraising.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.