PC Jeweller shares in focus after promoter stake rises, company repays debt to 7 consortium banks ahead of schedule
New Delhi [India], August 4: Shares of PC Jeweller are likely to remain in focus after the company announced two key corporate developments on Monday. The jewellery retailer informed exchanges that its promoter and Managing Director, Balram Garg, converted a fresh tranche of fully convertible warrants into equity shares, while the company also announced the successful repayment of outstanding debt to two more consortium banks, taking the total number of banks repaid to seven.
According to the company’s regulatory filing, the Board approved the allotment of 1.105 crore equity shares to promoter and Managing Director Balram Garg upon conversion of an equal number of fully convertible warrants. The conversion followed the receipt of the balance subscription amount of ₹14.92 crore, representing 75 percent of the warrant issue price. The newly allotted shares will rank pari passu with the existing equity shares of the company. PCJ 1.pdf
Following the allotment, the company’s paid-up equity share capital increased from 974.10 crore equity shares to 975.21 crore equity shares. The promoter group’s shareholding also increased marginally to 38.76 percent from 38.69 percent, while the public shareholding stood at 61.24 percent. Even after this conversion, 5.56 crore warrants remain pending for conversion.
In a separate exchange filing, PC Jeweller announced that it has successfully cleared and repaid all outstanding debt under the settlement agreement with two additional consortium banks. With this repayment, the company has now fully repaid dues to seven out of its fourteen consortium banks.
The company stated that all repayments to these seven banks were completed well ahead of their scheduled due dates, reaffirming its stated objective of becoming debt-free within the current quarter. PCJ 2.pdf
The twin announcements highlight PC Jeweller’s continued efforts to strengthen its balance sheet through accelerated debt reduction while simultaneously increasing promoter ownership via warrant conversions, developments that could remain on investors’ radar in the coming sessions.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
