PC Jeweller (ISIN: INE785M01021) has undergone significant changes in its ownership structure and equity share capital, as reported in a recent disclosure. Capri Global Holdings Private Limited, a non-promoter entity, has reduced its stake in the company, coinciding with a substantial increase in PC Jeweller's total equity share capital.

Shareholding Changes

Capri Global Holdings executed a series of transactions between May 29 and September 23. During this period, the company:

• Acquired 56,00,000 shares
• Sold 7,46,00,000 shares

These open market transactions resulted in a net reduction of Capri Global Holdings' stake in PC Jeweller from 6.663% to 4.623%.

Current Shareholding Position

Following these transactions, Capri Global Holdings now holds:

• 32,00,00,000 equity shares in PC Jeweller
• 4.623% of the total shareholding

PC Jeweller's Equity Expansion

Concurrent with these shareholding changes, PC Jeweller underwent a significant expansion of its equity share capital:

This expansion represents an increase of 108,39,89,870 shares, or approximately 18.57% growth in the company's equity base.

Regulatory Compliance

In compliance with SEBI regulations, specifically Sub Regulation 2 of Regulation 29 of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, Capri Global Holdings Private Limited has informed the stock exchanges – BSE Limited and National Stock Exchange of India Limited – about these transactions.

The disclosure, dated September 24, provides a detailed breakdown of the shareholding changes, including the mode of acquisition/sale (open market), and the dates of the transactions.

Market Implications

The reduction in Capri Global Holdings' stake is significant, occurring against the backdrop of PC Jeweller's expanded equity base. The dilution effect of the increased share capital partially explains the percentage decrease in Capri Global's ownership, even as they maintain a substantial number of shares.

Investors and market watchers will likely observe any potential impacts on PC Jeweller's stock performance and whether this signals any shift in the company's strategic direction or market perception.

PC Jeweller , a prominent Indian jewelry retailer, saw its shares climb 6.1% to Rs 15.94 following a series of positive announcements regarding debt reduction and financial performance.

Debt Reduction Progress

Managing Director Balram Garg revealed that the company has made significant strides in reducing its net debt. Over the past four months, PC Jeweller has decreased its net debt by 19%, bringing it down to Rs 1,445.00 crore from Rs 1,780.00 crore. This reduction was achieved through the repayment of Rs 335.00 crore in bank loans during the April-July period.

Ambitious Debt-Free Goal

The company has set an ambitious target to become debt-free by the end of the current fiscal year. To achieve this goal, PC Jeweller plans to raise Rs 1,800.00 crore through equity infusion. This fundraising effort includes Rs 500.00 crore from promoters and Capital Ventures, along with Rs 1,300.00 crore from warrant conversions.

Strong Q1 Financial Performance

PC Jeweller reported impressive quarterly results, demonstrating robust growth:

It's worth noting that the Q1 FY2025 profit included an exceptional item of Rs 106.00 crore from an income tax refund and related interest. Adjusting for this, the company's operating profit has shown substantial growth, increasing from Rs 49.00 crore in Q1 FY2025 to Rs 164.00 crore in Q1 FY2026.

Operational Highlights

PC Jeweller currently operates 52 showrooms across India, with 49 of these being company-owned locations. This extensive network allows the company to maintain a strong presence in the Indian jewelry market.

Future Outlook

The company's focus on debt reduction and its strong financial performance position it well for future growth. As per the latest LODR data, PC Jeweller has already raised Rs 2,702.11 crore during the previous financial year through a preferential issue of fully convertible warrants. Of this amount, approximately Rs 1,417.00 crore has been received, with the remaining Rs 1,285.00 crore expected upon conversion of the remaining warrants into equity.

Furthermore, the Board of Directors has approved an additional fundraising of up to Rs 500.00 crore through preferential allotment on a private placement basis. These financial moves are expected to support the company's goal of becoming debt-free by the end of FY 2025-2026.

As PC Jeweller continues to execute its debt reduction strategy and capitalize on the growing Indian jewelry market, investors will be closely watching its progress towards achieving its debt-free status and sustaining its financial performance.