PC Jeweller Announces 1:10 Stock Split with December 16 Record Date Amid Stellar Growth
image for illustrative purpose
Hyderabad: PC Jeweller Ltd, one of India's fastest-growing jewellery retail chains, has announced December 16, 2024, as the record date for its 1:10 stock split. This means that one equity share of the company will be sub-divided into 10 equity shares, marking a strategic move to enhance market liquidity and affordability for investors.
The company has also successfully converted 3,38,85,000 warrants into equity shares of Rs10 each. This conversion, which involved 35 non-promoter public allottees, raised Rs 142.82 crore at Rs 42.15 per warrant, underscoring the company’s ability to attract significant investor confidence.
The announcement follows an impressive financial performance for the quarter and half-year ended September 30, 2024. PC Jeweller reported remarkable growth in consumer demand and footfall, leading to a 1,430 per cent year-over-year (YoY) revenue surge in Q2 FY25 to ₹505 crore. The company’s EBITDA stood at Rs 129 crore, while profit before tax (PBT) reached Rs124 crore. For the half-year period (H1 FY25), revenue increased by 797 per cent YoY to Rs906 crore, EBITDA was Rs218 crore, and PBT amounted to Rs207 crore.
In addition to its financial achievements, the company has made strides in resolving outstanding issues with its consortium of 14 banks. During Q2 FY25, the company’s Offer for Settlement (OTS) was approved by all consortium banks. A Settlement Agreement was executed on September 30, 2024, with the company discharging a portion of the required cash consideration. This funding was partially secured through the promoter group’s subscription to preferentially issued fully convertible warrants.
The resolution of these banking issues and withdrawal of related litigations have strengthened the company’s position. The company remains optimistic about its growth trajectory, supported by a favorable investor response and a renewed focus on profitability.
Founded in 2005 with its first showroom in Karol Bagh, New Delhi, the company has become a household name in India’s jewellery sector. Its business model is centered on establishing large-format standalone showrooms in prime locations, offering an extensive range of jewellery that caters to diverse tastes and budgets. The company emphasises diamond jewellery and is committed to selling hallmarked gold and certified diamonds, ensuring product quality and purity.
PC Jeweller’s customer-centric approach includes transparent policies and the option for personalised designs, making it a trusted brand across India. By closely monitoring customer preferences, the company delivers exquisite designs that blend contemporary and traditional styles.
Looking ahead, PC Jeweller plans to capitalise on its strong foundation of customer loyalty and its ability to adapt to market trends. With its online and offline presence, coupled with innovative designs and unwavering quality standards, the company is poised to achieve sustainable growth while continuing to create timeless jewellery for its customers.
