Jewellery penny stock under Rs 20: Company allots 9,72,22,222 fully convertible warrants & allots 18,05,55,555 equity shares

PC Jeweller Ltd announced a significant change to its capital structure, following a decision by its Board of Directors on September 18, 2025. This action, approved by members through a postal ballot and with in-principle approvals from the BSE and NSE, involves two distinct preferential allotments. The first is the issuance of 9,72,22,222 fully convertible warrants to the company's promoter and Managing Director, Balram Garg. These warrants were issued for Rs 18 each, with an initial payment of Rs 4.50 per warrant. Each warrant can be converted into one equity share of Re 1 face value within 18 months, upon payment of the remaining 75 per cent of the issue price. This arrangement allows the company to receive immediate capital while providing the promoter with the option to increase his stake in the future.

The second part of the allotment involves issuing 18,05,55,555 equity shares to Capital Ventures Private Limited (CVPL), a non-promoter entity, for Rs 18 per share. This transaction was completed with the full subscription amount received upfront. These new equity shares will rank equally with the company's existing shares. As a result of this allotment, PC Jeweller's paid-up equity share capital has increased from Rs 7,068,068,150 to Rs 7,248,623,705. This strategic move, which brings in substantial capital from both a promoter and a public entity, is expected to strengthen the company's financial position and support its future growth initiatives.

The company also informed the opening of its new franchise showroom at Delhi on September 22, 2025, at Kapil Vihar, Pitampura, Delhi - 110034 Phone: 011 - 40198642

About the Company

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 reported a Profit After Tax (PAT) of Rs 164 crore on sales of Rs 725 crore in Q1 of the current financial year. This represents a significant improvement over the previous year's Q1, which saw a PAT of Rs 155 crore on sales of Rs 401 crore. Crucially, after adjusting for an exceptional Income Tax refund and interest of Rs 106 crore in the prior year, the Net Operating PAT for Q1 of the previous financial year was Rs 49 crore. This highlights a substantial 234 per cent year-over-year increase in operating PAT, from Rs 49 crore to Rs 164 crore.

Despite incurring finance costs of approximately Rs 41.6 crore in Q1 of this financial year (compared to a nearly negligible Rs 1.8 crore in Q1 of the previous financial year due to an interest moratorium), the Company still achieved a robust PAT of Rs 164 crore. The Company is actively working towards its goal of becoming debt-free by the end of FY 2025-2026. Significant progress has already been made, with approximately Rs 2,005 crore of debt discharged in the previous financial year and an additional Rs 335 crore repaid in Q1 of this financial year and July 2025. This has reduced the outstanding bank debt to approximately Rs 1,440 crore.

The company has a market cap of over Rs 9,700 crore. As of June 2025, State Bank of India (SBI) holds a 2.69 per cent stake and the Life Insurance Corporation of India (LIC) owns a 1.03 per cent stake in the company. The stock is up by 46.6 per cent from its 52-week low of Rs 10.21 per share and has given multibagger returns of over 875 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.