New Delhi, PC Jeweller Ltd’s board has approved a plan to raise equity of Rs 500 crore from promoters and Capital Ventures Pvt Ltd to prepay its debt, as part of its plan to become debt-free by the end of this fiscal.
Delhi-based PC Jeweller has a total of 52 showrooms, of which 49 are company-owned.
In a regulatory filing on Thursday, the company said the board has approved raising funds of up to Rs 500 crore through preferential allotment on a private placement basis.
The board approved the issuance and allotment of up to 9.72 crore fully convertible warrants convertible into equivalent fully paid-up equity shares of the company at an issue price of Rs 18 per warrant to promoter Balram Garg.
Garg will invest up to Rs 175 crore in the company.
The board also approved issuance and allotment of 18.05 crore shares at Rs 18 per share through preferential allotment on private placement basis to a person belonging to the ‘non-promoter, public category’, raising a total amount of Rs 325 crore.
The company will seek approval from shareholders through postal ballot.
“We will use this amount to prepay the debt. We are on the path to become debt free by March next year,” the company’s Managing Director Balram Garg told PTI.
PC Jeweller more than halved its bank debt to Rs 1,775 crore during the last fiscal.
In September 2024, PC Jeweller entered into an agreement with a consortium of 14 banks led by SBI to pay off its outstanding debt, which stood at around Rs 4,100 crore as of March 31, 2024.
Aided by the debt settlement, PC Jeweller posted a consolidated net profit of Rs 577.70 crore last fiscal.
In FY 2023-24, the company had posted a net loss of Rs 629.36 crore.
Its total income rose to Rs 2,371.87 crore in 2024-25 from Rs 669.87 crore in the previous year.
On July 4, PC Jeweller Ltd reported a nearly 80 per cent rise in revenue during the April-June quarter of this fiscal on the back of robust demand despite fluctuating gold prices and said it will become debt-free this fiscal.
The company said it witnessed a strong increase in demand for its products as consumers bought jewellery for weddings and festivals.
PC Jeweller also expressed confidence of becoming debt free in the current fiscal.
“In order to achieve its target, the company has further reduced its outstanding debts to its bankers by about 7.50 per cent during the June quarter,” the company said.
