Delhi-based PC Jeweller has a total of 52 showrooms, of which 49 are company-owned.
In a regulatory filing on Thursday, the company informed that the board approved raising of funds up to Rs 500 crore by way of preferential allotment on private placement basis.
The board approved issuing and allotting up to 9.72 crore fully convertible warrants convertible into equivalent number of fully paid-up equity shares of the company to the promoter Balram Garg at an issue price of Rs 18 per Warrant.
Garg will infuse up to Rs 175 crore in the company.
The board also approved issuing and allotting up to 18.05 crore shares to the person belonging to ‘Non-Promoter, Public Category’, by way of preferential allotment on private placement basis, at Rs 18 per share, for an amount aggregating up to Rs 325 crore.The company will take approvals from shareholders through postal ballot.”We will use this amount to prepay the debt. We are progressing on the path of becoming debt free by March next year,” the company’s MD Balram Garg told PTI.
PC Jeweller reduced bank loans by more than half to Rs 1,775 crore during the last fiscal year.
In September 2024, PC Jeweller executed a settlement agreement with a consortium of 14 banks led by SBI to clear its outstanding loan, which stood at nearly Rs 4,100 crore as of March 31, 3024.
Helped by the loan settlement, PC Jeweller posted a consolidated net profit of Rs 577.70 crore last fiscal.
In the 2023-24 fiscal, the company had clocked a net loss of Rs 629.36 crore.
Its total income jumped to Rs 2,371.87 crore in 2024-25 from Rs 669.87 crore in the preceding year.
On July 4, PC Jeweller Ltd reported around 80 per cent growth in revenue during the April-June quarter of this financial year on strong demand despite volatility in gold prices and said it will become debt free this fiscal.
The company said it witnessed high demand for its products, as consumers purchased jewellery for weddings and festivals.
PC Jeweller also expressed confidence of becoming debt free in the current fiscal.
“For achieving its target, the company has further reduced its outstanding debts towards its bankers by another approximately 7.50 per cent during the June quarter,” the company said.
