LIC-Backed Multibagger Stock Hit 52-Week High As Company Receives Approval of One Time Settlement by Bank of India & Board Is Likely To Announce Stock Split
The stock gave multibagger returns of over 560 per cent from its 52-week low of Rs 25.45 per share.
Today, shares of PC Jeweller Ltd gained 5 per cent upper circuit and made a new 52-week high of Rs 169.50 per share from its previous closing of Rs 161.45 per share.
PC Jeweller Limited announced that the Bank of India has formally approved its 'One Time Settlement' (OTS) proposal. The company had previously submitted the OTS plan to resolve its outstanding debts with the consortium of banks. The settlement terms encompass both cash and equity components, along with the release of securities and mortgaged properties. This positive development marks the approval of the OTS proposal by all fourteen member banks involved in the consortium.
Additionally, PC Jeweller Ltd informed that a meeting of the Board of Directors of the company will be held on Monday, September 30, 2024, inter-alia, to consider and approve the alteration in the share capital of the company by sub-division / stock split of existing equity shares having face value of Rs 10 each, fully paid-up, as may be determined by the Board of Directors and consequent alteration of Memorandum of Association of the Company. In the same meeting, the Board will also consider the appointment of new Directors of the Company, if any.
Earlier, the company received a refund of Rs 67.54 crore from the Income Tax Department, which stands credited to its account on September 06, 2024. So, in essence, the company received a large amount of money back from the government because it had overpaid its taxes.
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PC Jeweller Ltd is an Indian company that designs, manufactures, sells and trades gold, platinum, 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.
The company's financial position has been further strengthened by positive developments on the debt front. The withdrawal of the insolvency petition filed by the State Bank of India is a major victory. To support its growth and debt repayment, the company has secured shareholder approval to raise Rs 2,705.14 crore through a preferential issue of warrants. These achievements, coupled with the company's strong operational foundation, including a network of 57 showrooms across India and robust manufacturing capabilities, have enabled it to regain customer trust and confidence.
The company has a market cap of over Rs 7,800 crore. As of June 2024, Life Insurance Corporation of India (LIC) owns a 1.45 per cent stake in the company and FIIs bought 76,18,330 shares and increased their stake to 2.57 per cent compared to 0.93 per cent in March 2024. The stock gave multibagger returns of over 560 per cent from its 52-week low of Rs 25.45 per share. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.