PC Jeweller's share price saw a notable surge on Monday, December 2, 2024, hitting the upper circuit limit of ₹171.50, a 5% increase. This brings the stock dangerously close to its record high of ₹186.80, achieved earlier in October 2024.
Investors looking for a lucrative share market investment have shown significant interest in the stock following the company's announcement of its stock split. This solid price movement reflects growing investor confidence and market interest in the company's future prospects.
Strong early gains
The stock opened at ₹167.10 against its previous close of ₹163.35 and quickly surged by 5% to hit its upper circuit of ₹171.50. As of 11:25 AM on the same day, the share price stood at ₹170.80, representing an increase of 4.56% from its previous close. The remarkable early gains can be attributed to increased investor optimism surrounding the stock split, which has spurred positive market momentum.
The announcement has not only generated excitement for existing shareholders but also attracted new investors, enhancing its appeal as a share market investment.
Stock split announcement
On November 28, 2024, PC Jeweller's board declared the record date for a stock split, scheduled for December 16, 2024. This stock split will convert each existing share with a ₹10 face value into 10 new shares, each with a ₹1 face value. While the stock split increases the number of shares, it does not change the overall value of shareholders’ investments.
In essence, a shareholder holding one share will now possess 10 shares, but their total value remains the same. Such moves are typically seen as an effort to make the stock more affordable to a wider base of investors, thus potentially increasing liquidity.
Preferential allotment and changes in shareholding
Further to the stock split announcement, PC Jeweller revealed that it had allotted 39,87,900 shares to five non-promoter allottees on the conversion of warrants. This follows the preferential allotment of 48,08,02,500 fully convertible warrants to both promoters and non-promoter public categories in September and October 2024.
Before this issue, promoters and their group held 47.39% of the company’s shares. After the allotment, their stake was slightly reduced to 47.04%, while public shareholding increased to 52.96% from 52.61%.
Impressive growth in share price
PC Jeweller's share price has seen an extraordinary upward trajectory in the last year, with an impressive 494% increase. Currently priced at ₹171.50, the stock is just a few points shy of its record high of ₹186.80, which it achieved on October 1, 2024. The stock has witnessed a dramatic recovery from its 52-week low of ₹27.66, recorded just one year ago on December 1, 2023.
The substantial growth in share price, especially considering the company's low base last year, highlights the incredible turnaround and investor confidence in PC Jeweller's future prospects.
Conclusion
In conclusion, PC Jeweller’s share price hitting its upper circuit today marks a significant achievement for the company. With the stock near its record high and a robust growth trajectory over the past year, it is clear that the company’s strategic moves, such as the stock split and preferential allotments, are paying off.
For investors considering share market investment, PC Jeweller presents an intriguing opportunity, given its impressive growth and the positive outlook stemming from recent developments.
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