The board of directors of PC Jeweller Ltd. approved on Monday a share split in the ratio of 1:10 to enhance liquidity, as well as allotment of warrants to promoters amounting to Rs 646 crore.
The company will split one existing fully paid-up equity share, having a face value of Rs 10 each, into 10 shares having face value of Re 1, according to an exchange filing. It will result in the rise of the total number of shares from over 46.5 crore to 465.4 crore.
The record date for the share split will be intimated in due course. The plan is subject to shareholders' approval and will be executed within 45 days after the nod.
The share split has been approved with a view to enhance the liquidity of the company's equity shares and to encourage participation of retail investors by making shares more affordable, PC Jeweller said.
The jeweller also approved preferential allotment of 11.5 crore fully convertible warrants on a private placement basis to two promoter group entities at an issue price of Rs 56.20 per warrant, after receipt of 25% subscription amount.
Each of the warrant is convertible on payment of the balance consideration of 75% within 18 months from the date of allotment. The promoter entities are New Track Garments Pvt. and Balram Garg. The total sum to be raised from the warrant issue is Rs 646 crore.
PC Jeweller's share price closed 5% higher at Rs 177.95 apiece on the BSE ahead of the announcement, compared to 1.49% decline in the benchmark Sensex.
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