PC Jeweller to discuss issuance of up to 48,13,42,500 fully convertible warrants

PC Jeweller has informed exchanges that its board will meet on August 8, 2024 to discuss the issuance of up to 48,13,42,500 fully convertible warrants to a specific group of investors.

This group includes individuals affiliated with the company's founders (Promoter Group) and external public members (Non-Promoter, Public Category). These warrants will be offered at Rs 56.20 per warrant, which exceeds the minimum price set by regulations. The total amount raised will be Rs 2,705.14 crore. Detailed terms and conditions of the offering, along with the identities of the recipients, will be provided in a separate document.

Earlier, PC Jeweller 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 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.