PC Jeweller Resolves Debt with Equity Issuance

PC Jeweller Ltd's board approved the issuance of over 5.17 crore equity shares to a consortium of lenders, including SBI, as part of a one-time settlement for outstanding debts. The shares will be issued above the floor price, largely to settle bank loans and meet working capital needs.

PC Jeweller Ltd has taken a significant step towards debt resolution by issuing over 5.17 crore equity shares to a consortium of lenders, including the State Bank of India (SBI). This decision, detailed in a recent regulatory filing, aims to settle part of the company's outstanding debts through a preferential allotment via private placement.

The issuance of these shares, classified under the 'Non-Promoter, Public Category', comes at a price above the floor price. The move is part of a broader one-time settlement (OTS) strategy with a consortium of banks, featuring cash and equity components for debt settlement, along with the release of securities and mortgaged properties.

In light of recent positive developments, such as the withdrawal of a National Company Law Tribunal (NCLT) petition by SBI and a favorable response to its OTS proposal, PC Jeweller is refocusing on enhancing brand presence. The company, which operates 60 showrooms across 44 cities, plans to allocate 75% of newly raised funds to repay bank loans and 25% towards working capital needs.

(With inputs from agencies.)