Yes, they’re still alive — and yes, they’re still issuing shares.
On May 29, 2025, PC Jeweller Ltd (NSE: PCJEWELLER) quietly approved the conversion of 30.84 lakh warrants into 3.08 crore equity shares, further bloating its already-heavy capital base.
Let’s unpack this bedazzled dilution in plain English:
📌 At a Glance
- 🧾 Warrants Converted: 30,84,240
- 💎 Shares Allotted: 3,08,42,400 (face value ₹1 each)
- 💸 Amount Received: ₹13 crore (at ₹42.15 per warrant; 75% of issue price)
- 🎯 Allottee: New Track Garments Pvt. Ltd (Promoter Group)
- 📈 Promoter Holding: Rises from 39.80% → 40.08%
- 🧨 Paid-up Capital: Now at ₹657.54 crore
🏢 Quick Context: What Just Happened?
Remember back in Sept–Oct 2024, PCJ issued 48 crore warrants through preferential allotment? This conversion is part of that same batch.
Here’s the plot twist:
🧨 The face value was split in December 2024 from ₹10 → ₹1.
So now every warrant converts to 10 equity shares, keeping the maths spicy.
💰 Who Got the Shares?
Only one allottee this time:
| 🧾 Entity | 🚀 Shares Allotted | 💼 Category | 💰 Amount Paid |
|---|---|---|---|
| New Track Garments Pvt. Ltd | 3,08,42,400 | Promoter Group | ₹13 Cr |
This is a conversion of 75% of the full issue price (₹42.15 per warrant).
Meaning the full value is ₹56.20/warrant, with the initial 25% paid earlier.
📊 Capital Structure Change
| 🔢 Particulars | 💰 Before | 💰 After |
|---|---|---|
| Paid-up Capital | ₹654.45 Cr | ₹657.54 Cr |
| Equity Shares | 654.45 Cr shares | 657.54 Cr shares |
| Promoter Stake | 39.80% | 40.08% |
| Public Holding | 60.20% | 59.92% |
So…
Promoters just creeped up by 0.28% — enough to nudge their control, but not scare away institutions.
💬 EduInvesting Take
“PC Jeweller isn’t selling jewellery these days — it’s issuing shares.”
This allotment is technically clean (preferential issue, SEBI compliant, resolution approved at 1:13 PM sharp), but let’s be real:
- ₹13 Cr infusion is pocket change for a company once worth ₹14,000+ Cr.
- 3.08 Cr shares diluted for ~2% rise in promoter holding.
- The stock has fallen -0.47% intraday despite this “positive” equity infusion.
And let’s not forget: PCJ was in ESM/GSM frameworks earlier, with a history of corporate governance red flags.
So if you’re holding this for fundamentals… maybe ask which ones?
🧠 What to Watch Now
- Will the rest of the 48 Cr warrants get converted too?
- Will more non-promoter categories get in?
- Is this setting up for a merger, takeover, or delisting drama?
📅 Published: May 29, 2025
✍️ By: Prashant Marathe
🏷️ Tags: PC Jeweller, Preferential Allotment, Warrant Conversion, Dilution, Promoter Group, SEBI Regulations, Equity Split, EduInvesting
