LIC-backed multibagger penny stock at Rs 72.80 hit 52-week high; Board announces raising of funds up to Rs 2705,14,48,500 by preferential issue
The stock gave multibagger returns of 186 per cent from its 52-week low of Rs 25.45 per share.
PC Jeweller Limited has announced plans to raise a significant sum of money through the issuance of convertible warrants. On July 13, 2024, the company's board of directors approved the issuance of 48,13,42,500 warrants for Rs 56.20 each. These warrants will be offered to both existing shareholders and the general public, with the potential to raise up to Rs 2705,14,48,500. This revised plan expands on a previous proposal to offer warrants solely to the promoter group.
Each warrant gives the holder the right to convert it into one equity share with a face value of Rs 10 within 18 months following the issuance. If a warrant holder fails to exercise this conversion option within the stipulated timeframe, the warrant will expire, and the invested amount will be forfeited to the company. The company intends to use the proceeds from this warrant issuance to fund its operations.
Today, shares of PC Jeweller Ltd surged 4.64 per cent to an intraday high of Rs 72.80 per share from its previous closing of Rs 69.57. The stock also made a fresh new 52-week high of Rs 72.80 while its 52-week low is Rs 25.45.
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PC Jeweller Ltd is an Indian company that designs, manufactures, sells and trades gold, diamond and silver jewellery. They operate across India with multiple brands including Azva, Swarn Dharohar and LoveGold, and even created commemorative medallions for the Cricket World Cup. According to its Quarterly Results (Q4FY24) and annual results (FY24), the company reported a mixed set of numbers.
The company has a market cap of Rs 3,275 crore. The shares of the company are trading at 1.08 times its book value. As of March 2024, Life Insurance Corporation of India (LIC) owns a 1.45 per cent stake in the company and FIIs have increased their stake to 0.93 per cent compared to 0.78 per cent in December 2023. The stock gave multibagger returns of 186 per cent from its 52-week low of Rs 25.45 per share and investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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