PC Jeweller Shares: PC Jeweller Ltd’s (NSE: PCJEWELLER) share hit an upper circuit of 5% on 16 December. This surge has come after the company decided to split its shares into 10 smaller pieces i.e. stock split.
The company had set 16 December as the official date for this split of stock. In such a situation, this stock split has become effective from on Monday.
Due to this stock split, the face value of the company’s share has decreased from 10 to 1. At the same time, the total number of its shares has increased from 46.5 crores to Rs 465.4 crores. Also, its price fell from the previous closing price of Rs 174.20 to open at Rs 17.10.
PC Jeweller Ltd had announced to divide its shares in the ratio of 1:10 in September. The company’s shareholders approved this stock split on 21 November.
Let us tell you that companies often resort to stock splits to increase the number of their shares and reduce their price so that the participation of retail investors in their shares can increase.
Around 10 am, PC Jeweller Ltd’s share was locked in their upper circuit limit of Rs 18.29 with a gain of 5 percent. In comparison, the benchmark Nifty index was trading with a decline of about 0.04 percent. So far this year, PC Jeweller’s stock has seen a bumper rise of about 232.24 percent.
Along with the stock split, the board of PC Jeweller also approved the issuance of warrants worth Rs 646 crore to the promoters.
Under this, the company will issue 11.5 crore fully convertible warrants to its 2 promoter group entities based on private placement at an issue price of Rs 56.20 per warrant, provided they deposit 25% of the subscription amount.
Each warrant can be converted into equity upon payment of the remaining 75% of the amount within 18 months from the allotment date. The promoters comprise New Track Garments Private Limited and Balram Garg.
Quick Fact
| Company name | PC Jeweller |
|---|---|
| Stock price | ₹18.29 |
| Stock action | Upper circuit of 5% |
| Event date | 16 December |
| Key event | Stock split |
| Split ratio | 1:10 |
| New face value | ₹1 |
| Previous face value | ₹10 |
| Total shares before | 46.5 crores |
| Total shares after | 465.4 crores |
| Opening price | ₹17.10 |
| Previous price | ₹174.20 |
| Reason for split | Increase retail participation |
| Shareholder approval | 21 November |
| Year-to-date decrease | -63.60% |
| Warrants approved | Worth ₹646 crore |
| Warrant count | 11.5 crores |
| Warrant price | ₹56.20 per warrant |
| Subscription deposit | 25% upfront |
| Conversion condition | 75% within 18 months |
| Promoter entities | New Track Garments Private Limited, Balram Garg |
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