PC Jeweller to raise ₹500 crore via preferential issue to repay debt

The preferential allotment of equity securities will be made to promoter and non-promoter investors as the company aims to be debt-free by March 2026

PC Jeweller’s board on Thursday approved plans to raise nearly ₹500 crore through preferential allotment of equity securities to promoter and non-promoter investors, as part of its strategy to eliminate debt.

 

“We will use this amount to prepay the debt. We are progressing on the path of becoming debt-free by March next year,” Managing Director Balram Garg told news agency PTI.

 

In a filing to the Bombay Stock Exchange (BSE), the Delhi-based jewellery firm said it will issue up to 9.72 crore fully convertible warrants to promoter Balram Garg at an issue price of ₹18 per warrant, totalling ₹174.99 crore.

 

The board also approved issuing up to 18.05 crore equity shares to a non-promoter investor — identified in filings as Capital Ventures Pvt Ltd — at the same price, amounting to ₹324.99 crore. Both tranches will be issued by way of preferential allotment on a private placement basis, subject to shareholder approval and other regulatory clearances.

 

The board further approved increasing the company’s authorised share capital from ₹1,260 crore to ₹1,310 crore, comprising an additional 50 crore equity shares, the filing stated.

 

The fresh infusion and ongoing loan repayments form part of PC Jeweller’s broader debt-reduction strategy. In the last financial year, the company reduced its bank borrowings by over 50 per cent to ₹1,775 crore, according to PTI.

 

In September 2024, PC Jeweller signed a settlement agreement with a consortium of 14 banks — led by the State Bank of India — to resolve outstanding dues of approximately ₹4,100 crore as of March 2024, the report added.

 

Following the settlement, the company reported a consolidated net profit of ₹577.7 crore in FY25, reversing a net loss of ₹629.36 crore in the previous fiscal. Revenue also rose sharply to ₹2,371.87 crore from ₹669.87 crore year-on-year.

 

Shares of PC Jeweller closed at ₹18.74 on the BSE on Thursday.