PC Jeweller stock hits upper circuit again as co plans stock split and Rs 646 crore fund raise from promoters

PC Jeweller has proposed to split its equity shares in a 1:10 ratio.

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26 Aug, 2025 12:21

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PC Jeweller Ltd has announced a significant stock split and a major fundraising plan, both designed to enhance shareholder value and increase retail participation. The share price jumped another 5 percent on October 1 on the news, extending gains from the previous two days.

The company has proposed to split its equity shares in a 1:10 ratio, converting each existing share with a face value of Rs 10 into ten shares with a face value of Rs 1, it said in a stock exchange filing late on September 30. This move is subject to approval from the company’s shareholders and is expected to be completed within 45 days following the necessary approvals.

In addition to the stock split, PC Jeweller will raise a total of Rs 646 crore within 18 months through the issuance of 11.5 crore fully convertible warrants. The warrants will be priced at Rs 56.20 per unit, with an upfront subscription of Rs 161.6 crore, representing 25 percent of the total warrant price at Rs 14.05 per warrant.

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The company’s share price jumped 5 percent to hit the upper circuit at Rs 187.07 on October 1 during opening trade. The stock has been locked in the 5 percent upper circuit for the last two sessions as well. PC Jeweller's share price has surged over 7 times in the last year, raising the company’s market capitalisation to about Rs 7,500 crore.

The convertible warrants are to be allotted to two entities within the promoter group: New Track Garments Private Limited, which will receive 8 crore warrants, and Balram Garg (HUF), who will receive 3.5 crore warrants. Each warrant is convertible into one fully paid-up equity share of the company, contingent on the payment of the remaining 75 percent of the warrant issue price within 18 months from the date of allotment.

The rationale behind the stock split is to enhance the liquidity of the company’s equity shares, making them more affordable and accessible to retail investors, according to PC Jeweller. This strategic decision is expected to encourage greater participation from individual investors, thereby broadening the company’s shareholder base.

As for the company's share capital structure, the authorised capital will increase from 100 crore equity shares with a face value of Rs 10 each to 1,000 crore equity shares with a face value of Rs 1 each post-split. The issued, subscribed, and paid-up share capital will expand from 46.54 crore equity shares at Rs 10 each to 465.40 crore equity shares at Rs 1 each following the split.

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