PC Jeweller settles Rs 1,510 crore debt with shares

PC Jeweller Ltd has announced the issuance of 51.71 crore shares to a group of 14 banks. This is part of a plan to settle Rs 1,510 crore in debt through a preferential issue. The agreement, finalized on September 30, 2024, is designed to help the company reduce its financial obligations. The shares will be sold at Rs 29.20 each. This means the 51,71,14,620 shares will provide the banks with equal rights and benefits as existing shareholders. The one-time settlement, or OTS, includes both cash and equity options, as well as the release of mortgaged properties. This move comes after a notable recovery for PC Jeweller. In its third quarter of the 2024 fiscal year, the company posted a net profit of Rs 147.96 crore, compared to a loss of Rs 197.98 crore in the same period last year. Total income increased to Rs 683.44 crore, a significant rise from Rs 43.48 crore in the previous year. PC Jeweller has 55 showrooms in 41 cities across 15 states in India. The financial restructuring aims to improve the company's liquidity and operational efficiency. It also seeks to expand its retail presence and enhance investor confidence in the company’s future. Overall, this share allotment is a crucial step for PC Jeweller as it works to stabilize its finances and establish a path for continued growth and profitability.