PC Jeweller has opted for OTS (one-time settlement) for its outstanding dues with a consortium of banks
New Delhi: PC Jeweller Ltd.’s board has approved issuance of over 5.17 crore equity shares to a consortium of lenders, including SBI, to settle part of its outstanding debt.
In a regulatory filing on Wednesday, the company informed that the board has approved “issuance of 5,17,11,462 equity shares to the Consortium Lenders for settling part of their outstanding debts by way of preferential allotment on private placement basis”.
The consortium lenders will be classified under ‘Non-Promoter, Public Category’.
The shares will be issued at a price, which is higher than the floor price.
PC Jeweller has opted for OTS (one-time settlement) for its outstanding dues with a consortium of banks.
The terms and conditions of approved OTS include cash and equity components payable under the settlement, release of securities and mortgaged properties etc.
In an investor presentation in late May, PC Jeweller mentioned that the withdrawal of the petition from the National Company Law Tribunal (NCLT) by SBI and favourable consideration of its OTS proposal by the banks are positive developments.
“The company has again started focusing on increasing its brand presence and has started its marketing initiatives for the same, which is having a visible impact in the ongoing quarter,” it had said.
The company had 60 showrooms (including 6 franchisee showrooms) located in 44 cities spread across 15 states as of March 31, 2024.
In July, PC Jeweller Ltd had announced plans to raise up to Rs 2,705 crore by issuing warrants on a preferential basis to promoters and investors, mainly to settle bank loans and for working capital requirements.
“The funds will be utilised primarily for settlement of bank loans. Around 75 per cent of the fund will be used for repaying bank loans and the rest 25 per cent for working capital requirements,” PC Jeweller MD Balram Garg had said.
