PC Jeweller Limited is in focus today as the stock trades ex-date for its much-anticipated stock split in a 1:10 ratio. While some stock tracking platforms are showing a sharp 90% drop, this is purely due to the technical adjustment of share price following the stock split.
The jewellery company had announced its stock split earlier in September to enhance liquidity and make its shares more accessible to retail investors.
In a corporate filing, PC Jeweller clarified:
“The Board of Directors of the Company has fixed the Record Date as December 16, 2024, for the purpose of sub-division/split of equity shares. One equity share with a face value of ₹10 will be split into 10 equity shares with a face value of ₹1 each.”
What happens in a stock split?
- Share count increases: Existing shares are divided into multiple shares.
- Price adjusts proportionally: The share price reduces in proportion to the split ratio.
- Value remains the same: The market cap and overall value of holdings remain unchanged.
For example, if a stock was trading at ₹182.90 before the 1:10 split, its price would now reflect at ₹18.29 post-split, which aligns with the adjusted price seen today.
Key Highlights:
- Split Ratio: 1:10
- Record Date: December 16, 2024
Despite the technical drop, PC Jeweller shares are trading up 5% today.
