PC Jeweller shares soar as board approves share allotment to settle debt

Shares of PC Jeweller advanced over 6 per cent on Tuesday after its board approved the allotment of 517.1 million shares to a consortium of lenders via a preferential issue to settle Rs 1,510 crore debt. 

 

PC Jeweller's stock rose as much as 6.05 per cent during the intraday trade to Rs 14.2 per share. The stock later pared gains to trade 3.44 per cent higher at Rs 13.85 apiece, compared to a 1.19 per cent gain in Nifty 50 as of 11:40 AM. 

 

Shares of the company have risen by 35 per cent from its lows this year. However, the stock still trades at 12 per cent loss this year, compared to a 3.7 per cent fall in the Nifty 50. PC Jeweller has a total market capitalisation of Rs 7,474.81 crore.

 

The company received in-principle approvals from the BSE and National Stock Exchange of India on March 6, 2025 for the allotment of shares to its lenders, according to an exchange filing. Following this, the board on Monday, approved the allotment of 517.1 million shares each at an issue price of Rs 29.20 by way of preferential allotment on a private placement basis.    

 

After the allotment, the paid-up capital of the company will rise to Rs 635.5 crore comprising of 6,355 million equity shares of Re 1 each, the statement said. This is an increase from the previouse paid-up capital of Rs 583.8 crore held before the allotment. 

 

State Bank of India was allotted 176 million shares, the highest number of shares among lenders' consortiums. This was followed by the Union Bank of India and the Punjab National Bank. Meanwhile Canara Bank, Axis Bank, IndusInd Bank, and Kotak Mahindra Bank are also a part of this lenders' consortium. 

 

PC Jeweller offers a wide range of products including gold jewellery diamond jewellery and other jewellery with a thrust on diamond jewellery and jewellery for weddings. 

 

PC Jeweller posted a profit in the third quarter, driven by demand for jewellery during the festival and wedding season. The company posted a consolidated net profit of Rs 148 crore in the quarter ending December, compared with a loss of Rs 198 crore a year earlier and a profit of Rs 179 crore in the previous quarter.