This jewellery stock hits 52-week high as board to consider stock split; check details

PC Jeweller shares hit a fresh 52-week high after market opening on Wednesday after the company said that it would consider a stock-split next week.

In a stock exchange notification on Tuesday, September 24, PC Jeweller said that its board of directors will meet on September 30 to consider and approve the alteration in the share capital of the company by splitting existing equity shares.

“A meeting of the board of directors of the company will be held on Monday, September 30, 2024, inter-alia, to consider and approve the alteration in the share capital of the company by sub-division/split of existing equity shares having face value of ₹10 each, fully paid-up, as may be determined by the board of directors and consequent alteration of memorandum of association of the company,” the company said.

The details of the company’s first ever stock split will be announced after the board approval.

A stock split or subdivision of shares is undertaken by the companies to increase the total number of outstanding shares by dividing the existing shares, at a ratio decided by the company’s board. After a stock split, the stock’s price comes down and more shares become available for investors. However, the company’s market capitalisation remains unchanged.

The notification also added that the Board will consider the appointment of new directors of the company.

PC Jeweller informed the bourse that the trading window is also being closed with immediate effect and shall remain closed till two days after the declaration of unaudited financial results for the quarter and six months ended September 30 for designated persons of the company.

Reacting to the announcement, shares of PC Jeweller rallied up to 4.2% to hit a fresh 52-week high of ₹157.39 apiece on the National Stock Exchange of India (NSE) in early trade on Wednesday. The stock has notably gained a whopping 490% in the past one year.

A turnaround in financial performance has triggered a rally in PC Jeweller shares. The company’s revenue had surged by nearly 493% year-on-year in the June 2024 quarter to ₹401.1 crore. Profit was recorded at ₹156.06 crore in Q1FY24 compared to a loss of ₹171.62 crore in the year-ago period.

The company was also in the news recently after it reached a one-time settlement with a consortium of banks led by State Bank of India (SBI) to settle its debt.