Shares of PC Jeweller Ltd. surged nearly 5% in early trade on Friday post the company's announcement of the record date for its proposed stock split. The jewellery maker has set Dec. 16 as the record date to determine the eligibility of shareholders, to divide one existing fully paid-up equity share into 10 shares, according to an exchange filing on Thursday.
As a result, the face value of each share will be reduced from Rs 10 to Rs 1. This will increase the total number of shares from over 46.5 crore to 465.4 crore.
The stock split was approved by shareholders on Nov. 21 through a postal ballot, and it must be implemented within 45 days of the approval.
According to PC Jeweller, the purpose of the stock split is to enhance liquidity in the company's shares and to make them more affordable, thus encouraging greater participation from retail investors.
In September, the board approved the issuance of warrants to promoters, amounting to Rs 646 crore. The jewellers will issue 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, subject to the receipt of a 25% subscription amount.
Each warrant can be converted into equity upon payment of the remaining 75% of the consideration within 18 months from the allotment date. The promoter entities involved are New Track Garments Pvt. and Balram Garg.
The scrip rose as much as 4.97% to Rs 164 apiece, the highest level since Oct. 22, 2024. It pared gains to trade 2.40% higher at Rs 159.98 apiece, as of 09:54 a.m. This compares to a 0.55% advance in the NSE Nifty 50 Index.
It has risen 190.46% on a year-to-date basis. Total traded volume so far in the day stood at one times its 30-day average. The relative strength index was at 57.55.
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