PC Jeweller Ltd. has announced a stock split in the ratio of 10:1, where one equity share of face value ₹10 will be split into 10 shares with a face value of ₹1 each. The company will announce the record date for the split soon.
This is the first corporate action of this kind by the company. A stock split is typically done to make shares more affordable and enhance liquidity by increasing the outstanding number of shares available for trading.
Key Developments:
- Convertible Warrants Issue: PC Jeweller approved the issuance of 11.50 crore fully convertible warrants to two promoter group entities – New Track Garments Pvt. and Balram Garg – on a private placement basis at an issue price of ₹56.20 per warrant. The total amount to be raised from this issue is ₹646 crore. Each warrant is convertible upon payment of the remaining 75% of the consideration within 18 months from the allotment date.
- New CFO Appointment: Vishan Deo has been appointed as the Chief Financial Officer, effective October 1, 2024, following the voluntary retirement of Sanjeev Bhatia.
- Stock Performance: PC Jeweller’s shares have surged over 250% in 2024, with the stock closing at ₹177.95 on September 30, hitting the 5% upper circuit. On October 1, the stock continued its rise, trading at ₹187.07, up by 5%.
Impact of Stock Split
The split will make the stock more affordable for shareholders and potentially enhance trading liquidity. The split and issuance of convertible warrants signify PC Jeweller’s strategic moves to strengthen its financial position and expand shareholder value.
