PC Jeweller to settle bank loans with ₹2,705 crore fundraising
PC Jeweller Ltd has unveiled plans to raise up to ₹2,705 crore by issuing warrants on a preferential basis. The company's promoters will contribute around ₹850 crore by subscribing to the issued warrants. Around 75% of the funds raised will primarily be used to settle bank loans. The remaining 25% will be allocated toward meeting working capital requirements, PC Jeweller MD Balram Garg told PTI.
Warrants to be issued at ₹56.20 apiece
According to the company's regulatory filing, PC Jeweller's board has approved the issuance and allotment of up to 48,13,42,500 fully convertible warrants on a private placement basis. These warrants will be issued at ₹56.20 apiece to both the 'promoter group' and 'non-promoter public category.' The proposal includes issuing 15 crore warrants specifically to the promoter group. An extraordinary general meeting (EGM) is scheduled for August 8, 2024, where members will vote on this proposed preferential issue.
PC Jeweller settles outstanding dues with bank consortium
PC Jeweller has opted for a one-time settlement (OTS) for its outstanding dues with a consortium of banks. However, the company did not disclose the total outstanding dues or details of the OTS. The terms and conditions of this approved OTS, combine cash and equity components payable under the settlement, release of securities, as well as mortgaged properties. Punjab National Bank, the third largest bank in the consortium in terms of exposure, has given its approval for this one-time settlement.
Focus on brand presence and business revamp
PC Jeweller is now focusing on strengthening its brand presence and has initiated marketing efforts to that end. As of March 31, 2024, the company maintains a wide network of 60 showrooms (featuring six franchisee showrooms) in 44 cities across 15 states. In addition to this, PC Jeweller is also working on revamping all other aspects of its business operations such as launching new jewelry collections, tweaking its franchisee business, and cost optimization.
