PC Jeweller's share price witnessed a brief period of upward movement during the early trading session on Sunday, February 1, before ultimately trending downward into negative territory. This market behavior was partly driven by notable declines in precious metal prices, with silver experiencing a particularly significant drop.
Impact of Precious Metals Correction on Jewellery Stocks
The bullion markets have been characterized by substantial volatility in recent times, with both gold and silver reaching elevated levels. However, the recent corrections in these precious metals have provided some relief to jewellers by easing cost pressures. Industry experts highlight that jewellery stocks often face headwinds when gold and silver prices surge, as higher input costs can dampen consumer demand and compress profit margins for manufacturers and retailers alike.
Specific Price Movements in Precious Metals
During the trading session on Sunday, February 1, the MCX silver price for March futures contracts declined by ₹7,099, representing a decrease of 2.43%. The price opened at ₹2,84,826 per kilogram, compared to the previous closing figure of ₹2,91,925.
Similarly, the MCX gold rate continued its downward trajectory, with the price of the yellow metal falling by ₹13,711, which translates to a 9% reduction. This brought the price to ₹1,38,634 per 10 grams, reflecting ongoing corrections in the precious metals market.
Corporate Developments: Equity Share Issuance
In a separate corporate development, PC Jeweller's Board of Directors approved the issuance of 51,24,68,600 equity shares, each with a face value of Re 1. This decision was made through a resolution circulated on January 31, 2026, following the conversion of 5,12,46,860 fully convertible warrants.
The newly issued shares have been allocated to three beneficiaries from the Promoter Group, subsequent to the receipt of the full payment for the warrants. The conversion process was executed after making necessary adjustments to the number of shares, the paid-up value per share, and the premium per share. These adjustments were implemented in response to the company's earlier subdivision of equity shares.
Details of Share Subdivision and Payment
The subdivision involved converting one equity share with a face value of ₹10 into ten equity shares with a face value of Re 1 each. This corporate action became effective on December 16, 2024, and necessitated the recalibration of share-related parameters during the warrant conversion process.
The company received a total of ₹216,00,55,149 as the remaining payment, which constitutes 75% of the issue price per warrant. The cost per warrant was set at ₹42.15. This payment was processed in accordance with the terms of the preferential issue and the exercise of conversion rights by the warrant holders, adhering to the regulations outlined in the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.
Rights of Newly Issued Shares and Capital Impact
The newly issued equity shares will possess identical rights to the existing equity shares of the company across all dimensions. This includes entitlements to dividend distributions and voting privileges, ensuring parity among shareholders.
Following this issuance, the company's paid-up equity share capital will see a corresponding increase, reflecting the addition of these new shares to its capital structure. This move represents a significant corporate action that aligns with the company's strategic financial planning and capital management objectives.
