PC Jeweller Limited, one of India’s prominent jewellery brands, is in the spotlight as its stock trades ex-date for a 1:10 stock split. The record date for the stock split is fixed as December 16, 2024. This strategic move by the company aims to improve liquidity in the market and make shares more accessible to retail investors.
Here’s a detailed breakdown of the PC Jeweller stock split, its implications, and how investors can benefit from it.
What is a Stock Split?
A stock split is a corporate action where a company divides its existing shares into multiple shares to boost liquidity and make the stock price more affordable. However, this does not change the company’s overall market capitalization or the value of the shareholder’s investment.
For instance, in a 1:10 stock split, one share of ₹10 face value will be split into ten shares of ₹1 face value each. While the number of shares held increases, the total investment value remains unchanged.
Key Details of the PC Jeweller Stock Split
- Stock Split Ratio: 1:10 (1 share split into 10 shares).
- Face Value Adjustment: Reduced from ₹10 to ₹1 per share.
- Record Date: December 16, 2024.
- Ex-Date: December 13, 2024 (last day to buy shares eligible for the split).
- Objective: Improve liquidity and attract retail investors.
Why Did PC Jeweller Announce a Stock Split?
The decision to split the stock was driven by several factors:
- Increased Liquidity: Lower share prices encourage higher trading volumes.
- Retail Accessibility: Affordable stock prices make it easier for small investors to buy shares.
- Market Appeal: Stock splits are often perceived positively, leading to increased investor interest.
PC Jeweller’s Performance in 2024
The stock split follows an impressive rally by PC Jeweller shares in 2024:
- Year-to-Date Returns: 247.17%.
- 52-Week High: ₹186.80.
- 52-Week Low: ₹32.27.
The stock closed at ₹174.80 on the BSE last week, reflecting its strong growth trajectory.
2. Increased Liquidity
A lower price point often leads to higher trading volumes, improving liquidity in the market.
3. Unchanged Investment Value
While the number of shares increases, the overall value of the investor’s portfolio remains the same as the share price adjusts proportionally.
4. Alignment with Market Trends
The split aligns PC Jeweller’s stock with its peers, improving market competitiveness.
How to Be Eligible for the Stock Split?
To qualify for the stock split, investors needed to purchase shares before the ex-date (December 13, 2024). Shares bought on or after this date will not be eligible for the split due to the T+1 settlement cycle.
FAQs About PC Jeweller Stock Split
1. What is the record date for the PC Jeweller stock split?
The record date is December 16, 2024.
2. What is the stock split ratio?
The stock split ratio is 1:10, meaning one share will be split into ten shares.
3. How will the stock split impact the share price?
The share price will reduce proportionally to the split ratio. For example, if the share is trading at ₹175 before the split, it will trade at approximately ₹17.50 post-split.
4. Does the stock split change the value of my investment?
No, the overall value of your investment remains unchanged. Only the number of shares and the price per share adjust.
5. Why did PC Jeweller announce a stock split?
The company announced the split to enhance liquidity, make the shares more accessible to retail investors, and attract a broader investor base.
6. Can I still buy shares and benefit from the split?
Shares bought on or after the ex-date (December 13, 2024) will not be eligible for the split.
7. Will dividends be affected by the stock split?
Post-split, dividends will be adjusted based on the new number of shares and their face value.
Conclusion
The PC Jeweller stock split is a significant move aimed at enhancing the stock’s market accessibility and appeal. With its stellar performance in 2024, delivering a 247% return year-to-date, the company is positioned as a strong player in the jewellery and retail segment. This stock split not only reflects the company’s confidence but also its commitment to aligning with investor-friendly policies.
By Shehnaz Shaikh
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