PC Jeweller‘s board has approved a proposal to raise INR 2,000 crore through rights issues and preferential allotment of fully convertible warrants. Additionally, in a meeting held on Tuesday, the board approved a proposal to increase the authorized share capital and make alterations to the capital clause of the memorandum of association, according to a regulatory filing.
The company announced that, out of the total of INR 2,000 crore, its board has sanctioned the raising of INR 1,500 crore through a rights issue of equity shares priced at INR 10 each for eligible equity shareholders.
The filing stated that the record date for this will be announced later. It also mentioned that the issue size, capped at INR 1,500 crore, is contingent upon obtaining regulatory and other necessary approvals.
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Furthermore, the company announced that the board has authorized the raising of up to INR 500 crore through a preferential allotment of fully convertible warrants.
“The funds from the preferential issue will be allocated towards settling the company’s financial obligations, pending approval from the consortium of lenders,” stated the company.
Since June 2021, the company’s accounts have been categorized as non-performing assets (NPAs) by its lenders, including the State Bank of India. Legal actions for the recovery of outstanding dues have been initiated by the lenders.
As of December 2023, the company operated 55 owned stores and seven franchise stores. Three of its stores in Delhi are temporarily closed due to ongoing court proceedings.
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