LIC-backed multibagger penny stock at Rs 73.30: Promoters bought 15,00,00,000 shares & non-promoters bought 33,13,42,500 shares aggregating to Rs 2,705.14 crore!
The stock gave multibagger returns of 184 per cent from its 52-week low of Rs 25.45 per share.
The Board of Directors of PC Jeweller Limited approved the issuance of up to 48,13,42,500 fully convertible warrants to a specific group of investors, including those affiliated with the company's founders (Promoter Group) and outside members of the public (Non-Promoter, Public Category). These warrants will be offered for Rs 56.20 per warrant, which is higher than the minimum allowed price set by regulations. The total amount raised is Rs 2705.14 crore. The specific terms and conditions of the offering, along with the identities of the intended recipients, will be detailed in a separate document.
The money raised from the preferential issue (Rs 2,705.14 crore) will be used for various purposes, including repaying bank debt (Rs 2,025 crore by April 2026), covering working capital needs (Rs 529.69 crore by May 2026), general corporate purposes (Rs 150 crore by April 2026) and issuing related expenses (Rs 0.45 crore by February 2026). In the allotment, Promoters bought 15,00,00,000 shares & non-promoters bought 33,13,42,500 shares aggregating to Rs 2,705.14 crore.
Earlier, the company announced that IndusInd Bank Limited has agreed to its One Time Settlement (OTS) proposal to clear outstanding dues. The OTS terms include a combination of cash and equity payments, along with the release of securities and mortgaged properties held by the bank. This development was disclosed to the public under SEBI's listing regulations.
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On Tuesday, shares of PC Jeweller Ltd surged 3.74 per cent to an intraday high of Rs 73.30 per share from its previous closing of Rs 70.66. The stock also made a fresh new 52-week high of Rs 73.30 while its 52-week low is Rs 25.45. At the closing bell, shares of the company were trading at Rs 72.76 per share, up 2.26 per cent.
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 over Rs 3,000 crore. The shares of the company are trading at 1.15 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 184 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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