PC Jeweller to raise up to Rs 427 crore via debentures

PC Jeweller Ltd will raise up to Rs 427 crore from DVI Fund Mauritius through debentures for expansion of its business.

"The board of Directors of the company at its meeting held on April 6 has approved the issue of compulsorily convertible debentures for an aggregate amount of up to Rs 427 crore by way of a preferential allotment on private placement basis to DVI Fund Mauritius Ltd subject to necessary approvals in this regard," PC Jeweller said in a regulatory filing today.

When contacted, PC Jeweller Managing Director Balram Garg said, "We will raise up to Rs 427 crore from DVI Fund. The proceeds will be utilised as capital expenditure for future expansion."

The company currently has three factories and 60 retail stores across the country.

Garg said the company is adding 15-20 stores every fiscal and is exploring to set up new manufacturing facilities.

"The US-based DVI Mauritius is our existing investor and has around 4% stake in the company. This new round of infusion shows their confidence in us." Garg said, adding post this the fund's stake in the jewellery firm will rise further.

In February, PC Jeweller had acquired premium bridal gold jewellery brand AZVA from the World Gold Council (WGC) for an undisclosed amount.

The company's standalone net profit increased to Rs 321.82 crore in the April-December of this last fiscal from Rs 258.09 crore in the year-ago period.

Income from operations increased to Rs 5,360.72 crore for the nine months ended December against Rs 4,328.32 crore in the year-ago period.