PC Jeweller gets board approval to raise Rs 2,000 cr fund via rights issue

PC Jeweller on Tuesday said its board has approved a proposal to raise Rs 2,000 crore through rights issues and preferential allotment of fully convertible warrants.

The board in a meeting held on Tuesday also approved a proposal to increase the authorised share capital and alteration in the capital clause of the memorandum of association, a regulatory filing said.

Out of the total of Rs 2,000 crore, the company said its board approved the plan to raise Rs 1,500 crore by way of rights issue of equity shares of Rs 10 per each to the eligible equity shareholders.

The record date for the same will be notified later. The issue size of up to Rs 1,500 crore would be subject to regulatory and other approval, the filing said.
 

That apart, the company said the board approved raising up to Rs 500 crore through a preferential allotment of fully convertible warrants.

"The proceeds of the preferential issue will be utilised towards the payment of financial liabilities of the company, subject to the approval of the consortium of the lenders," the company said.

The company's accounts have been classified as non-performing assets (NPA) with its lenders since June 2021, including the State Bank of India, and lenders have initiated legal proceedings for recovery of dues.

Till December 2023, the company had 55 owned and seven franchise stores. Three stores of the company located in Delhi remain temporarily shut due to ongoing court proceedings.