PC Jeweller Ltd.'s board of directors on Thursday fixed Dec. 16 as the record date for determining the eligibility of members for the stock split of one existing fully paid-up equity share into 10 shares to enhance liquidity.
The face value of the equity shares will be cut from the current Rs 10 to Rs 1, according to an exchange filing. This will result in the rise of the total number of shares from over 46.5 crore to 465.4 crore.
The shareholders had approved the stock split on Nov. 21 through a postal ballot and the split has to be executed within 45 days after the nod.
The share split has been approved with a view to enhance the liquidity of the company's equity shares and to encourage participation of retail investors by making shares more affordable, PC Jeweller said.
In September, the board had also approved the allotment of warrants to promoters, amounting to Rs 646 crore. The jewellers will allot 11.5 crore fully convertible warrants on a private placement basis to two promoter group entities at an issue price of Rs 56.20 per warrant, after receipt of 25% subscription amount.
Each of the warrants is convertible on the payment of the balance consideration of 75% within 18 months from the date of allotment. The promoter entities are New Track Garments Pvt. and Balram Garg.
In September, Bank of India had approved for PC Jewellers' proposal of a one-time settlement. The terms and conditions of the one-time settlement include cash and equity components, and release of securities, mortgaged properties, the company said.
PC Jeweller's stock fell as much as 3.60% during the day to Rs 158.45 apiece on the National Stock Exchange. The stock closed 1.56% higher at Rs 156.23 per share, compared to a 1.49% decline in the benchmark Nifty. The share price has risen 443.41% in the last 12 months and 210.91% on a year-to-date basis.
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