PC Jeweller shares hit 5% upper circuit post share split

Shares of the company opened higher and rallied as much as 5% to hit the upper circuit limit at ₹18.29 apiece on the NSE. More than 76 lakh shares of the company changed hands on the bourse. The total trading value stood at ₹13.72 crore.

PC Jeweller shares rally after 1:10 stock split

PC Jeweller shares turned ex-stock split on Monday. The company’s Board in October had approved the stock split of its one share of face value of ₹10 into 10 shares of face value of ₹1 each. Thus one share was divided into 10 units.

The record date for the same was December 16. Stock splits increase the stock liquidity in the market and make it more economical for investors to own shares of a company.

While approving the stock split, the PC Jeweller Board had approved a fundraise of ₹646 crore from promoter through the allotment of 11.5crore fully convertible warrants on a private placement basis.

The issue price was ₹56.2 per warrant, after receipt of 25% subscription amount.

PC Jeweller shares race more than 245% in 2024 so far

PC Jeweller shares have given multibagger returns of over 245% in 2024 so far. Share price has jumped from around ₹50 per share in January 2024 to ₹174.17 per share (NSE closing price on December 13 before stock split).

The stock witnessed a marked rally in the second and third quarters of 2024-25 following strong results by the company and other factors.

PC Jeweller posted first quarterly profit in Jul-Sept after nine quarters of losses

PC Jeweller, which is among the top five gold and jewellery companies in the country, turned profitable in July-September after nine straight quarters of losses.

The company reported a multifold jump in domestic sales to ₹505 crore in Q2FY25 compared to ₹33 crore in the year-ago period.

The company had reported sales of ₹401 crore in the first quarter of FY25. The EBITDA was ₹129 crore in Q2 of FY2025 compared to a loss of ₹23 crore in Q2FY24. Its net profit stood at ₹179 crore in the September quarter of FY25 against a loss of ₹152 crore in the year-ago period.

The results were boosted by a reduction in custom duty on gold imports from 15% to 6% announced in the Union Budget.

PC Jeweller settles insolvency pleas

The jewellery retailer achieved an important milestone in its efforts towards an amicable settlement of its issues with the consortium banks in the second quarter.

During the quarter, the company received the approval of its Offer for Settlement (OTS) from the all 14 banks of the consortium.

As per the terms of the Settlement Agreement, the company paid part of the cash consideration that it owed to the lenders.

A substantial portion of this consideration was raised from the Promoter Group entities by means of subscribing to Fully Convertible Warrants of the Company.