PC Jeweller share price rallied as much as 7.13% to ₹8.11 apiece in Wednesday's trading session amid rising gold and silver prices. The jewellery stock opened at ₹7.89 per share today, as compared to the previous close of ₹7.57 on Monday.
MCX gold prices opened higher today at ₹1,51,427 per 10 gm and climbed to an intraday peak of ₹1,51,870, marking a gain of around 0.50% during the session. Meanwhile, MCX silver prices opened 1% lower at ₹2,38,501 per kg today, but trimmed losses during the intraday session, climbing to ₹2,42,498 per kg.
Rising bullion prices benefit jewellery stocks by increasing the value of their existing inventory and allowing them to sell jewellery at higher prices, boosting revenue. They also improve investor sentiment, as markets expect stronger earnings from these companies.
PC Jeweller recent business updates
In another update, PC Jeweller, on March 31, informed the exchanges that it has allotted 7,90,45,290 shares, with a face value of ₹1, on conversion of 79,04,529 warrants to non-promoter categories.
The conversion took place after the concerned parties paid the remaining amount of ₹33,31,75,897.35, representing 75% of the issue price per warrant at ₹42.15 each.
Following this allotment, the company’s total paid-up equity share capital increased. Each share has a face value of ₹1 and will rank pari passu with the existing equity shares of the company.
On March 28, the company had allotted 20,09,70,560 equity shares following the conversion of fully convertible warrants. The conversion included 2,00,97,056 warrants held by the promoter group and public shareholders, resulting in total fund mobilisation of ₹84.70 crore.
The conversion was completed after receiving the outstanding subscription amount of ₹84,70,90,910.40. The warrant exercise price was fixed at ₹42.15 per unit, accounting for 75% of the total issue price, in accordance with the terms specified in prior disclosures.
PC Jeweller share price trend
The multibagger jewellery stock has shown a largely negative trend in the near term, declining 18.16% over the last month.
Additionally, PC Jeweller shares have fallen 13% year-to-date and dropped 41% over the past year.
Despite this short-term weakness, the stock has delivered multibagger gains of 203.75% over the last three years and 193% over the past five years.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
