PC Jeweller Limited announced that the board of directors have approved its plans to raise nearly ₹2,705 crore from a preferential issue of share warrants to its promoters and investors, according to a Bombay Stock Exchange (BSE) filing on Saturday, July 13.
The jewellery company plans to issue 48,13,42,500 or 48.13 crore fully convertible share warrants with a face value of ₹10 per share.
PC Jeweller aims to clear its bank dues and fulfil the working capital demands, reported PTI quoting Balaram Garg, managing director of PC Jewellers.
The promoters will infuse nearly ₹850 crore from the warrants subscription, he said, according to the PTI report.
Also Read | Gold and silver prices today on 14-07-2024: Check latest rates in your cityThe share warrants are being issued at an issue price of ₹56.20 per share, out of the total warrants, 15 crore warrants are to be issued to the promoter group, as per the filing.
PC Jeweller Limited announced that the board of directors have approved its plans to raise nearly ₹2,705 crore from a preferential issue of share warrants to its promoters and investors, according to a Bombay Stock Exchange (BSE) filing on Saturday, July 13.
The jewellery company plans to issue 48,13,42,500 or 48.13 crore fully convertible share warrants with a face value of ₹10 per share. The preferential allotment will be done on a private placement basis to the promoters and the non-promoter (public investors) group, according to the release.
PC Jeweller aims to clear its bank dues and fulfil the working capital demands, reported PTI quoting Balaram Garg, managing director of PC Jewellers.
"The funds will be utilised primarily for settlement of bank loans. Around 75 per cent of the fund will be used for repaying bank loans and the rest 25 per cent for working capital requirements," Garg told PTI. The promoters will infuse nearly ₹850 crore from the warrants subscription, he said, according to the PTI report.
Also Read | Gold and silver prices today on 14-07-2024: Check latest rates in your city
The share warrants are being issued at an issue price of ₹56.20 per share, out of the total warrants, 15 crore warrants are to be issued to the promoter group, as per the filing.
The company also said that it will hold an Extra-Ordinary General Meeting (EGM) on August 8, to seek approval from the shareholders for the preferential issue, as per the release.
The jeweller has applied for a one-time settlement (OTS) scheme for its outstanding dues with a consortium of banks, according to the PTI report. The terms include cash and equity components payable under the settlement, said the report.
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PC Jeweller in early July, announced that Punjab National Bank (PNB), the third-largest bank in the consortium as per exposure, has approved the one-time settlement of the dues. The total amount of outstanding debt was not disclosed, according to the PTI report.
According to the investor presentation for the final quarter of 2024, the company talked about the positive developments for the brand.
"The company has again started focusing on increasing its brand presence and has started its marketing initiatives for the same, which is having a visible impact in the ongoing quarter," said the company.
