PC Jeweller to Raise ₹2,705 Crore via Warrants Issue for Loan Repayment and Working Capital Needs

PC Jeweller Limited announced that its board of directors approved plans to raise nearly ₹2,705 crore through a preferential issue of share warrants to its promoters and investors. This announcement was made in a Bombay Stock Exchange (BSE) filing on Saturday, July 13.

Details of the Share Warrants Issue

The jewellery company will issue 48.13 crore fully convertible share warrants with a face value of ₹10 per share. This preferential allotment will be done on a private placement basis to both promoters and non-promoter public investors.

Usage of Funds

PC Jeweller aims to use these funds to clear its bank dues and meet working capital demands. According to Balaram Garg, managing director of PC Jewellers, “75% of the funds will be used to repay bank loans, and the remaining 25% will be for working capital requirements.” Promoters will contribute about ₹850 crore from the warrants subscription.

Warrants Pricing and Allocation

The share warrants are priced at ₹56.20 per share, with 15 crore warrants issued to the promoter group.

Extra-Ordinary General Meeting (EGM)

The company will hold an Extra-Ordinary General Meeting (EGM) on August 8 to seek shareholder approval for the preferential issue.

One-Time Settlement (OTS) Scheme

PC Jeweller has applied for a one-time settlement (OTS) scheme to clear outstanding dues with a consortium of banks. Punjab National Bank (PNB), the third-largest bank in the consortium, has approved the settlement. However, the total outstanding debt amount was not disclosed.

Positive Developments and Future Plans

In their investor presentation for the final quarter of 2024, PC Jeweller highlighted positive developments for the brand. The company is focusing on increasing its brand presence and marketing initiatives, which have shown positive impacts in the ongoing quarter. They are also preparing for new jewellery collection launches, revamping their franchisee business, and optimizing costs.