PC Jeweller Share Price Hits Upper Circuit Post Stock Split
According to PC Jeweller, the purpose of the stock split is to enhance liquidity in the company's shares.
Share price of PC Jeweller Ltd. hit 5% upper circuit on Monday following the company's announcement of a stock split. The stock split took effect with the ex/record date set for Dec. 16.
As a result, the face value of each share will be reduced from Rs 10 to Re 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.
PC Jeweller Share Price
Share price of PC Jeweller was stuck in 5.01% upper circuit at Rs 18.29 apiece as of 09:54 a.m. This compares to a 0.04% decline in the NSE Nifty 50.
The stock has risen 232.24% on a year-to-date basis. Total traded volume so far in the day stood at 1.9 times its 30-day average. The relative strength index was at 65.24.
