PC Jeweller Ltd has unveiled plans for a 1:10 stock split and a Rs 646 crore fundraising initiative through convertible warrants. The stock surged 5% to Rs 187.07 on October 1, continuing its upward trend. These moves aim to boost shareholder value and increase retail investor participation.
The stock split will divide each Rs 10 face value share into ten Rs 1 face value shares, pending shareholder approval. The company plans to complete this process within 45 days of receiving necessary approvals, making shares more accessible to retail investors.
PC Jeweller will issue 11.5 crore fully convertible warrants at Rs 56.20 each to raise Rs 646 crore. An upfront subscription of Rs 161.6 crore, representing 25% of the total warrant price, will be paid at Rs 14.05 per warrant. The remaining 75% is due within 18 months.
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The warrants will be allotted to two promoter group entities: New Track Garments Private Limited (8 crore warrants) and Balram Garg (HUF) (3.5 crore warrants). Each warrant can be converted into one fully paid-up equity share upon full payment within the specified timeframe.
PC Jeweller’s stock has experienced significant growth, increasing over 7 times in the past year and reaching a market capitalization of about Rs 7,500 crore. The company believes the stock split will enhance liquidity and attract more retail investors, broadening its shareholder base.
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Post-split, the company’s authorised capital will increase from 100 crore equity shares (Rs 10 face value) to 1,000 crore equity shares (Rs 1 face value). The issued, subscribed, and paid-up share capital will expand from 46.54 crore shares to 465.40 crore shares.
