Jewellery stock PC Jeweller share price edged higher on Tuesday, February 24 despite stock market crash after it informed stock exchanges that it has expanded its overseas footprint through the incorporation of a step-down subsidiary in Africa.
The stock rose as much as 1.2% to its day’s high of ₹10.12 on BSE. In comparison, the benchmark indices Sensex and Nifty lost around 1% each in intra-day deals on rising dollar, uncertainty around US tariffs and US-Iran war tensions.
Mining-focused expansion outside core jewellery business
The new entity, PCJ Mining SARL, has been incorporated in the Republic of Chad through PCJ Gems & Jewellery Limited, which is a wholly owned subsidiary of PC Jeweller. As per the disclosure, PCJ Gems & Jewellery Limited holds 66% of the paid-up share capital of PCJ Mining SARL, giving it majority ownership and control.
The paid-up share capital of PCJ Mining SARL stands at 10,00,000 CFA francs. The company has reported nil turnover, as commercial operations are yet to commence.
“PCJ Gems & Jewellery Limited, a wholly-owned subsidiary of the Company, has incorporated a subsidiary, namely PCJ Mining SARL in Republic of Chad,” the company stated in its exchange filing.
According to the disclosure, PCJ Mining SARL will operate in the extraction of precious metal ores. Its proposed activities include mining, mineral exploration and quarrying, along with the production, refining, and marketing of mineral products. The subsidiary will also be permitted to undertake general import-export trade and provide related services linked to its mining operations.
The company noted that no governmental or regulatory approvals are currently required for the incorporation, and no indicative timeline has been specified for completion, as the transaction involves the formation of a new subsidiary rather than an acquisition. Since this is an incorporation exercise, there is no cash consideration, share swap, or acquisition cost involved.
The move signals PC Jeweller’s intent to diversify into upstream activities linked to precious metals, even as the core jewellery retail and manufacturing business remains its primary focus.