PC Jeweller Ltd has informed the stock exchanges that its board has approved the proposal to raise up to Rs 2,705 crore by issuing warrants on a preferential basis.
The promoters will infuse around Rs 850 crore into the company by subscribing to warrants issued by the company.
In a regulatory filing on Saturday, PC Jeweller informed that its board has approved the proposal to raise funds up to Rs 2,705.14 crore through preferential issue of fully convertible warrants.
It is proposed that these warrants be issued at a price of Rs. 56.20 each.
Out of the total warrants, the proposal is to issue 15 crore warrants to the promoter group.
Meanwhile, PC Jeweller said Punjab National Bank has given approval for one-time settlement of its outstanding dues.
In a regulatory approval, PC Jeweller informed that « Punjab National Bank, the third largest bank after State Bank of India among the consortium banks of the company in terms of exposure, has conveyed its approval to the One Stop Settlement (OTS) proposal submitted by the company. » PC Jeweller had opted for OTS to settle the outstanding dues with a consortium of banks.
The terms and conditions of the approved OTS include cash and equity elements payable as part of a settlement, release of securities and mortgaged properties, etc., the filing said.
PC Jeweller did not mention the outstanding dues to all banks or the details of the OTS.
In an investor presentation in late May, PC Jeweller mentioned that SBI’s withdrawal of the National Company Law Tribunal (NCLT) petition and the banks’ favourable consideration of its OTS proposal are positive developments.
« The company has again started focusing on increasing its brand presence and has launched its marketing initiatives for the same, which is having a visible impact in the current quarter, » she said.
The company continues to maintain a vast network of 60 showrooms (including 6 franchise showrooms) located in 44 cities spread across 15 states across India as on March 31, 2024.
« Furthermore, the company’s core assets, namely manufacturing and design capabilities, manufacturing facilities, skilled personnel, soft skills in the form of systems and procedures, customer policies, etc., remain intact, » PC Jeweller said.