PC Jeweller to Announce Stock Split After 452% One-Year Surge

Shares of PC Jeweller Ltd has lately seen some buzz, primarily because an official statement has been generated by PC Jewellers claiming that its Board of Directors would be meeting on September 30, 2024, and would consider and approve the company's first-ever stock split.

As of 3:00 PM IST on Wednesday, 25th September, shares of PC Jeweller were going at ₹153.19 a piece on the NSE, a 1.42% increase from yesterday’s close.

The company would announce the details about this being the first split of this stock, the ratio of which, available after the board meeting. The board would also discuss probable appointment of new directors under the company's exchange filing.

"In terms of Regulation 29 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, notice is hereby given that a Board of Directors meeting is scheduled to be held on Monday, 30 September 2024 to consider and approve the subdivision or splitting of existing equity shares of ₹10/- each, fully paid-up, as decided by the Board.". This will also include a revision to the Company's Memorandum of Association, the filing added.

PC Jeweller will also close its trading window which would remain closed till two working days after the publication of its unaudited financial results for the quarter and six months ended September 30, 2024.

A stock split is a corporate action that increases the number of outstanding shares a company has by splitting the existing shares into several new shares. Its basic effect is to decrease the price of the stock, thereby making the stock more liquid for investors to invest in without actually having to alter the overall market value of the company.

For example, if it is a 2-for-1 stock split, shareholders receive one more share of the company for every one they own, and the cost of shares is reduced by half. If the share was costing ₹1,000 prior to the split, after the split, the same share would be priced at ₹500, with the shareholders owning twice as much in shares.

PC Jeweller has an old tradition of rewarding its shareholders with dividend and bonus shares. But this time, the company will be carrying out a stock split that it has not done so far in the past, increasing the interest of investors.

Stock of PC Jeweller has turned in a superb performance in the past year with more than 452% growth in the last 12 months and achieved 223.4% gains in 2024 so far. It has marked a rise for six of the nine months this year, including a 36% growth during the last month of September. The stock has gone up by 18.11% during August and spectacularly by 83.83% during July.

It had an earlier three-month correction during 2024. It saw a stock value dip of 11% in May, 3% in April, and 6.8% in March. It bounced back with gains of 4.6% in February and 18.2% in January. The stock had also reached its 52-week high on September 24 at ₹153.75, which marked a 504% rise from the lowest level it achieved within a 52-week period at ₹25.45 in October of the previous year.

With PC Jeweller to announce its first stock split since it had jumped a cumulative 452%, investor sentiment is upbeat. The stock had performed extremely well in 2024 and was seen as having tremendous future prospects.

PC Jeweller Ltd is an India-based manufacturer, trader, and seller of various types of jewelry. The products the company offers include gold, diamonds, precious stones, and silver jewelry for marriage as well as parties and daily use.