PC Jeweller, a small-cap multibagger stock, saw its shares locked in the 5% upper circuit at ₹176.85 on October 16. The surge came after the company converted 4.35 lakh equity shares from warrants issued to both promoter and public category investors. This marks the third consecutive session of a 5% gain, taking the stock’s total increase to 15% during this period.
Warrant conversion boosts investor confidence
PC Jeweller recently notified that it had issued 48.08 crore fully convertible warrants to select investors. These warrants, issued through a preferential private placement, allowed select promoter group members and non-promoter public category investors to invest in the company's stocks. The warrants' conversion into equity shares came after the company received ₹1.83 crore from two investors, with ₹42.15 paid per warrant, 75% of the original issue price.
Fundraising and potential stock split
PC Jeweller is actively raising funds by issuing 3.66 crore warrants to 114 investors, including those from both promoter and public groups. According to SEBI guidelines, investors pay 25% of the warrant issue price upfront, with the remaining 75% due within 18 months. During this period, investors holding warrants can benefit from corporate actions such as bonuses, stock splits, and rights issues.
The company also hinted at a potential stock split, which could divide its ₹10 shares into ten ₹1 shares. This move could make the stock more accessible and attract more investors to invest in stocks, thereby increasing trading activity. Although no exact date for the stock split has been announced, it has already raised investor interest.
The one-time settlement with the Bank of India
In another positive development, PC Jeweller secured approval from the Bank of India for a one-time settlement (OTS) to address outstanding debts to 14 banks. The OTS plan includes cash payments, equity deals, and the release of mortgaged properties, all part of the company's restructuring efforts.
PC Jeweller’s impressive share price performance
PC Jeweller has delivered impressive returns, rising 413% in the past year and 279% year-to-date. The stock has shown strong performance, with notable gains in August (18.11%) and July (83.83%). Despite some minor corrections, the stock has rebounded strongly and continues to draw attention.
Key takeaways
PC Jeweller’s strong fundamentals and positive momentum continue to attract investors looking to invest in stocks with high growth potential.
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