PC Jeweller share price slumped nearly 6% on Friday after the company announced raising of funds through Qualified Institutions Placement (QIP). The penny stock declined as much as 5.80% to ₹9.73 apiece on the BSE.
PC Jeweller said its board of directors on July 16 approved raising of funds up to an aggregate amount not exceeding ₹1,000 crore through QIP, in one or more tranches.
The company will issue equity shares having face value of Re 1 each and / or other eligible securities or any combination thereof, through QIP, in one or more tranches.
The board also approved the constitution of Qualified Institutions Placement Committee with authority to appoint necessary intermediaries, advisors and other agencies, finalise the structure, size, timing, pricing, preliminary placement document and placement document and other terms and conditions of the QIP.
The committee will also execute all necessary documents, make requisite filings and do all such things and take all such actions, decisions and steps as may be necessary or incidental in connection with the proposed QIP, PC Jeweller said in a regulatory filing on July 16.
Increase in Authorised Share Capital
The board of directors of PC Jeweller also approved an increase in the company’s authorised share capital from the existing ₹1,310 crore, comprising 1,050 crore equity shares of Re 1 each and 26 crore preference shares of ₹10 each, to ₹1,460 crore. The revised authorised share capital will comprise 1,200 crore equity shares of Re 1 each and 26 crore preference shares of ₹10 each.
The increase will be effected through the creation of an additional 150 crore equity shares of Re 1 each, along with the consequential alteration to the Capital Clause of the company’s Memorandum of Association.
PC Jeweller Share Price Performance
PC Jeweller share price has gained 10% in one month, but has fallen 4% in six months. The penny stock has declined 43% in one year, while it has rallied 36% in two years. PC Jeweller stock price has delivered multibagger returns of 205% in three years and 257% over the past five years.
At 10:45 AM, PC Jeweller share price was trading 3.19% lower at ₹10.00 apiece on the BSE.
