Shares of PC Jeweller Ltd witnessed a massive decline on Tuesday, July 8. The stocks declined over 9% after the NSE and BSE placed the company’s stock under the Short-Term Additional Surveillance Measures (ASM) framework.
PC Jeweller shares had rallied nearly 60% in the past one month. Led by strong business updates in the June quarter, the stocks have delivered over 200% returns in the past one year, tripling investor wealth.
PC Jeweller shares were trading 9.1% lower at Rs 16.99 on the NSE at 11:47 am on Tuesday.
“Despite volatility in gold prices, the company has reported standalone revenue growth of nearly 80% as compared to the same quarter of the previous financial year,” the company said in a regulatory filing.
The company received tremendous demand for jewellery during the wedding and festive season. PC Jeweller also said that it has reduced its outstanding liabilities to banks by more than 50% during 2024-25. The company expressed confidence that it will become debt free in the current financial year. In the June quarter also, the company has reduced its outstanding debt by about 7.5%. Apart from this, PC Jeweller has announced that its board of directors will meet on Thursday i.e. July 10, 2025. In this meeting, the proposal to raise capital will be considered and approved.
The company said that the fund raising work will be done through preferential allotment, for which necessary approval will be taken from shareholders, regulatory bodies and other relevant authorities.
If this fund raising plan of the company is successful, the market may consider it a positive sign, as it reflects the company’s ability to raise capital and commitment to growth. However, it may also have an impact on investors due to concerns of equity dilution.
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