Bank of Baroda Approves OTS Proposal By PC Jeweller; Check Details Here

On Sunday, PC Jeweller informed exchanges that they have received approval on the One Time Settlement (OTS) proposal submitted by the Company to Bank of Baroda on July 20, 2024.

The company said in an exchange filing, "This is to inform that Bank of Baroda vide its letter dated July 18, 2024, which was received by the Company on July 20, 2024, has conveyed its approval to the One Time Settlement ("OTS") proposal submitted by the Company. The Company had opted for OTS to settle the outstanding dues. The terms and conditions of approved OTS include cash and equity components payable under settlement, release of securities and mortgaged properties etc".

Previously, the company announced that IndusInd Bank Limited had accepted its One Time Settlement (OTS) proposal to clear outstanding dues. The OTS terms include a mix of cash and equity payments, along with the release of securities and mortgaged properties held by the bank. This development was disclosed to the public in accordance with SEBI's listing regulations.

The PC Jeweller Limited Board of Directors authorised last week the issuing of up to 48,13,42,500 fully convertible warrants to certain investors. This group comprises members of the public who are not promoters (Non-Promoter, Public Category) and those associated with the company's founders (Promoter Group). The price per warrant for these warrants is going to be Rs 56.20, which is more than the regulatory minimum price. A total of Rs 2,705.14 crore will be raised.

The funds raised from this preferential issue (Rs 2,705.14 crore) will be allocated for various purposes, including repaying bank debt (Rs 2,025 crore by April 2026), meeting working capital needs (Rs 529.69 crore by May 2026), general corporate purposes (Rs 150 crore by April 2026), and covering issuance-related expenses (Rs 0.45 crore by February 2026). In the allotment, promoters acquired 15,00,00,000 shares, while non-promoters acquired 33,13,42,500 shares, totalling Rs 2,705.14 crore.

The stock's 52-week high is Rs 73.60 and its 52-week low is Rs 25.45. The stock has given multibagger returns of 122 per cent in one year.

PC Jeweller Limited (BSE: 534809) is a prominent jeweller based in New Delhi, India. Since beginning operations in April 2005 with a single showroom in Karol Bagh, Delhi, the company has expanded to 80 showrooms across 66 cities in 17 states and union territories. PC Jeweller is involved in the manufacturing, export, wholesale, and retail of gold and diamond jewellery in India. Their business model focuses on opening large-format, standalone stores in high-street locations. The company is committed to quality, offering only hallmarked gold jewellery and certified diamond jewellery.