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Case Study: PC Jeweller, Promoter Pledging and Stock Collapse

On 16 January 2018 PC Jeweller touched ₹600.65 on the BSE. By 16 July 2018, after the company withdrew a ₹424 crore buyback its bankers would not approve, it closed at ₹88.90. Investors who screened for promoter pledging found nothing to worry about: the only encumbrance on promoter shares, a non-disposal undertaking linked to an investment by DVI Fund, had been released in March 2017. This course uses PC Jeweller to show why a zero pledge figure is not a clean bill of health. You follow the 2018 collapse month by month, from the Vakrangee stake purchase and an off-market share gift to the SEBI insider trading probe and the buyback reversal. You then open the balance sheet to see the working capital, inventory and bank debt stress that the share price was pricing in, trace the loan default and SBI's insolvency petition, and work through the 2024 one-time settlement that paid lenders partly in new shares and diluted every existing holder. The course closes with a promoter leverage framework that goes beyond pledge percentage, built from exchange filings, annual reports and screener.in.

PC Jeweller Case StudyPromoter PledgingPromoter LeverageNon-Disposal UndertakingsWorking Capital StressCorporate Governance Red FlagsDebt Restructuring and Dilution

MODULES

5

DURATION

~3.5 hrs

TRACK

Stock Market Basics

What You'll Master

Read PC Jeweller's encumbrance and shareholding disclosures and explain why its pledge figure stayed at or near zero through the collapse

Reconstruct the 2018 share price collapse event by event, from the Vakrangee stake to the withdrawn buyback

Explain what SEBI investigated around PC Jeweller's share price in 2018 and what its orders concluded

Diagnose the working capital, inventory and bank debt stress behind the fall using annual report numbers

Calculate how the 2024 one-time settlement and equity issued to lenders diluted existing shareholders

Apply a promoter leverage checklist that covers pledges, non-disposal undertakings, guarantees, bank debt and corporate actions

Access Level

LEARNER

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Everything included

Full Text Playbooks

Actionable Exercises

Mobile Reading Mode

Lifetime Updates

Curriculum Breakdown

Chapter 1: A 600 Rupee Stock With a Clean Pledge Record

3 Lessons

From One Delhi Store to a Market Darling: PC Jeweller Before 201811 min read

The Pledge Screen Said Zero: What PC Jeweller's Encumbrance Filings Showed12 min read

Pledging Is Only One Form of Promoter Leverage11 min read

Chapter 2: The 2018 Collapse, Month by Month

4 Lessons

January to April 2018: Vakrangee, a Violent Intraday Crash and an Off-Market Gift12 min read

April to May 2018: Fidelity Exits and the Buyback Announcement11 min read

July 2018: Bankers Say No and the Stock Falls a Quarter in One Day11 min read

SEBI's Probe: Insider Trading Allegations, Settlement and Impounded Gains12 min read

Chapter 3: The Balance Sheet Behind the Price

4 Lessons

Inventory Days: When Gold Sits in the Vault Instead of Selling12 min read

Bank Debt and Gold Metal Loans: How a Jeweller Funds Its Stock12 min read

Export Receivables and Write-Offs: Revenue That Never Became Cash11 min read

Default, NPA and the NCLT Petition: The Lenders Run Out of Patience12 min read

Chapter 4: The Settlement and the Dilution

3 Lessons

The 2024 One-Time Settlement: Cash, Collateral and Shares for the Banks12 min read

Promoter Warrants, a Stock Split and a Shrinking Promoter Stake11 min read

Peak, Trough and Revival: Doing the Return Maths for Each Type of Shareholder12 min read

Chapter 5: A Promoter Risk Framework Beyond Pledge Percentage

3 Lessons

The Promoter Leverage Checklist: Pledges, Undertakings, Guarantees and Bank Debt12 min read

Event Red Flags: Withdrawn Buybacks, Off-Market Transfers and Regulator Probes11 min read

Putting It Together: Screening a Listed Company on screener.in Step by Step13 min read