Multibagger Stock PC Jeweller Announces 1:10 Stock Split: Record Date Set
In a welcome relief for the investors, PC Jeweller, that is one multibagger stock which has done exceptionally well for investors during 2024, has announced a 1:10 stock split to make it easily accessible and more liquid in the markets. Its board of directors has kept December 16, 2024, as the record date. Shareholders who would have holdings of this company at this cut-off date are eligible for these benefits.
Important Details of the Stock Split
Stock Split Ratio: 1:10 one equity share of ₹ 10 face value shall be split into ten equity shares of ₹ 1 face value each.
Record Date: 16 December, 2024.
Date of the announcement: The board fixed the record date through circular resolution passed on November 28, 2024 with the approval from the shareholders on November 21, 2024.
The news was released in a formal exchange filing, with the company underlining the fact that it is working to improve liquidity and attract more diversified investor participation.
What is Stock Split?
A stock split is the reduction of face value of shares of a company to multiply the number of shares outstanding.
For PC Jeweller, this would mean that every existing share with a face value of ₹10 will be split into ten shares with a face value of ₹1, thus making the shares more accessible to retail investors.
Why a Stock Split?
Increased Liquidity: A lower share price generally increases trading volumes, making it easier for investors to buy and sell shares.
Accessibility for Retail Investors: PC Jeweller is attempting to increase the reach of small and medium-sized investors by reducing the per-share price.
Confidence: The confidence of the company in its position in the market and prospects in the future is generally reflected through such decisions.
Performance of PC Jeweller: A Multibagger Stock
PC Jeweller has emerged as a multibagger stock by offering significant returns over the last one year: 214% gain in 2024, so far.
One-Year Return: More than 450% in the last 12 months, which speaks of its high growth potential and strong market positioning.
The stock ended 1.67% higher at ₹155.70 on November 28, as investors reacted to the news.
Eligibility for Stock Split
According to SEBI guidelines, the company has intimated the stock exchanges (BSE and NSE) about the stock split details.
Eligibility: All those investors who own PC Jeweller shares at the record date of December 16, 2024 would be eligible to enjoy the benefits of the stock split.
It would attract the attention of existing shareholders and new investors who are in search of growth opportunities.
What does this mean for investors?
The stock split is a strategy that aligns with the growth strategy of PC Jeweller and is likely to have the following impacts:
Improved Market Participation: At lower share prices, retail investors find the stock more economical and participate more.
High Volume Trading: The split can improve liquidity, helping investors to easily buy or sell shares.
Possible Stock Price Movement: Even though splitting stocks does not alter the company fundamentals, it creates positive emotion among investors, and this causes a stock price increase after a split.
This makes PC Jeweller to go with the 1:10 stock split as the strategic step aimed at making it a more liquid stock at the same time consolidating its commitment to shareholder value. Its record as a multibagger stock and the excellent return it has made over the last year continues to attract a lot of investor attention.
This December 16, 2024, date would be beneficial to the present shareholders with the split but may attract more new investors who see an opportunity to take part in the growth story of the company.
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