PC Jeweller Ltd has strengthened its capital structure with the allotment of 13.61 crore equity shares to non-promoter investors, including Mauritius-based Unico Global Opportunities Fund, following the conversion of 1.36 crore fully convertible warrants. The move, approved by the Board of Directors on September 10, 2025, reflects a strategic step in enhancing financial flexibility while simultaneously broadening the company’s investor base.
Key Transaction Highlights
The warrants, originally issued through a preferential allotment on a private placement basis, were converted at a price of ₹42.15 per share. This transaction has brought in ₹573.76 crore of fresh capital, with 75% of the issue price payable at the time of conversion. Importantly, the conversion terms were revised to reflect the company’s December 2024 share split, in which each ₹10 share was split into 10 shares of ₹1 each.
Breakdown of Allottees
The latest equity issuance was spread across three non-promoter, public category investors:
- Unico Global Opportunities Fund Ltd (Mauritius-based FII): Converted 1.18 crore warrants into 11.86 crore shares, contributing ₹50 crore.
- Intellexs Investments Solutions Pvt Ltd: Converted 15.5 lakh warrants into 1.55 crore shares, adding ₹6.53 crore.
- Maheshkumar Gupta: Converted 2 lakh warrants into 20 lakh shares, with a contribution of ₹0.84 crore.
Strengthened Balance Sheet & Shareholding Dynamics
Post-conversion, PC Jeweller’s paid-up equity capital has increased to ₹706.80 crore, up from ₹693.19 crore. This translates into a total of 706.80 crore outstanding shares.
The transaction has slightly altered the ownership structure:
- Public shareholding has risen to 61.44%, up from 60.68%.
- Promoter and promoter group holding has declined marginally to 38.56% from 39.32%.
Why This Matters
For PC Jeweller, this development is significant on multiple fronts:
- Strengthened Capital Base: The infusion of over ₹570 crore bolsters the company’s equity cushion, giving it greater operational and financial flexibility.
- Institutional Vote of Confidence: The sizable participation of Unico Global Opportunities Fund signals renewed institutional interest, often seen as a strong endorsement of future prospects.
- Enhanced Liquidity: The increase in public shareholding improves free float and stock liquidity, making the counter more attractive to both domestic and global institutional investors.
Expert Take
This transaction represents more than just an equity conversion; it highlights the company’s ability to attract credible institutional investors at a time when retail jewellery players are under intense competitive and regulatory scrutiny. With higher public float and a stronger capital base, PC Jeweller is better positioned to pursue growth opportunities and restore market confidence.
Conclusion
By securing institutional backing through this preferential allotment, PC Jeweller has not only reinforced its balance sheet but also sent a positive signal to the market. The coming quarters will be crucial in determining whether this capital strengthening translates into improved operational performance and sustained investor confidence.
Disclaimer:
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