PC Jeweller Expands Equity Base with 17.56 Lakh New Shares on Warrant Conversion

PC Jeweller Limited , a prominent player in the Indian jewelry market, has announced a significant change in its equity structure. The company's Board of Directors has approved the allotment of 17,56,260 new equity shares, each with a face value of ₹1, to Hawk Capital Pvt Ltd. This move comes as a result of the conversion of 1,75,626 fully convertible warrants at ₹56.20 per warrant.

Key Details of the Allotment

The allotment has led to several important changes in PC Jeweller's capital structure:

Particulars	Before Allotment	After Allotment
Paid-up equity share capital	₹732.67 crores	₹732.85 crores
Number of equity shares	732,67,38,595	732,84,94,855

Impact on Shareholding Pattern

The new allotment has slightly altered the company's shareholding pattern:

Category	Pre-allotment Shares	Pre-allotment %	Post-allotment Shares	Post-allotment %
Promoters and Promoter Group	272,56,79,480	37.20%	272,56,79,480	37.19%
Public	460,10,59,115	62.80%	460,28,15,375	62.81%
Total	732,67,38,595	100.00%	732,84,94,855	100.00%

Financial Implications

The company received ₹74,02,635.90 from Hawk Capital Pvt Ltd, representing 75% of the issue price per warrant.
The newly allotted shares will rank pari-passu with the existing equity shares of the company.

Regulatory Compliance

This allotment is part of a larger preferential issue announced earlier, complying with SEBI regulations. The company has duly informed the stock exchanges, adhering to the disclosure requirements under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

While this move slightly dilutes the existing shareholding, it strengthens PC Jeweller's capital base, potentially providing additional resources for the company's operations or expansion plans.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.69%	-5.48%	-4.23%	-7.30%	-20.06%	+622.50%

PC Jeweller Limited (PCJ) has reported robust financial results for the second quarter, demonstrating significant growth across key metrics. The company's performance was bolstered by sustained consumer demand throughout the festive season.

Financial Highlights

PCJ's standalone domestic revenues surged by approximately 63% year-on-year in Q2. Here's a snapshot of the company's financial performance:

Parameter	Q2 (₹ in crores)	Q2 Previous Year (₹ in crores)	Change
Sales	825.00	505.00	63%
Gross Profit	191.00	101.00	89%
EBITDA	246.00	129.00	91%
PBT	204.00	124.00	65%

The company's Operating PAT (Profit After Tax, excluding income tax refund and interest) increased from ₹102.00 crores in the previous year's Q2 to ₹202.50 crores this Q2, marking a substantial growth of approximately 99% year-on-year.

Debt Reduction and Financial Strategy

PCJ continues to make significant strides in reducing its outstanding debt. During Q2, the company further reduced its outstanding debt payable to banks by approximately 23% (about ₹406.00 crores). This follows a 9% reduction in the first quarter and over 50% reduction in the previous financial year.

The company aims to achieve a debt-free status by the end of the next financial year. This debt reduction aligns with PCJ's objective of becoming debt-free, which is expected to significantly improve its financial position and reduce finance costs in the coming quarters.

Inventory and Operational Updates

Following compliance with the terms of the Joint Settlement Agreement, PCJ has regained possession of all its inventory previously held in custody by the Debts Recovery Appellate Tribunal (DRAT). This development, confirmed by a DRAT order dated October 7, marks a positive turn for the company's operational capabilities.

Expansion and Fund Raising

PCJ continues to strengthen its regional presence, launching a new franchise-owned showroom in Pitampura, Delhi during the quarter. This expansion reflects the company's focus on a balanced model of owned and franchise stores.

The company has successfully raised funds through preferential issues, with approximately ₹1,877.00 crores already received out of a total of about ₹3,202.00 crores (including ₹2,702.11 crores raised in the previous fiscal year and an additional ₹500.00 crores approved in July). The remaining amount of approximately ₹1,325.00 crores is expected to be realized upon conversion of the remaining preferential warrants into equity.

Future Outlook

With its strategic debt reduction plan, improved operational momentum, and successful fund-raising initiatives, PC Jeweller is positioning itself for sustainable growth. The company expects to benefit from reduced finance costs as it approaches its debt-free target, potentially leading to improved profitability in the coming quarters.

Management remains confident about building on this strong performance in upcoming quarters and is focused on reclaiming its leading market position in the jewelry industry.