IndusInd Bank Agrees On One-Time Settlement Proposal With This LIC-Backed Stock

PC Jeweller Limited has announced that IndusInd Bank Limited has agreed to its One Time Settlement (OTS) proposal to clear outstanding dues. The OTS terms include a combination 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 under SEBI's listing regulations.

Additionally, PC Jeweller Limited has revealed a fresh strategy that was authorised by the board on July 13, 2024, to generate a significant amount of money by the issuing of 48,13,42,500 convertible warrants at a price of Rs 56.20 apiece. The offer, which was once intended for the promoter group, has been broadened to include current shareholders as well as the general public. Up to Rs 2705,14,48,500 can be raised through this means. Each warrant has an 18-month expiration date and forfeiture if it is not exercised. It is convertible into one equity share with a face value of Rs 10. These funds are intended to be used by the firm for operating expenses.

On Tuesday, shares of PC Jeweller Ltd surged around 2.5 per cent to an intraday high of Rs 72.88 per share from its previous closing of Rs 70.71. The stock also made a fresh new 52-week high of Rs 73.20 while its 52-week low is Rs 25.45. The stock gave multibagger returns of 177.6 per cent from its 52-week low of Rs 25.45 per share.

Earlier, in its March quarter investor presentation, the company emphasised that SBI's withdrawal of the petition from the National Company Law Tribunal (NCLT) and the favorable consideration of its OTS proposal by the banks were positive developments. Consequently, the company has refocused on enhancing its brand presence and has launched new marketing initiatives, expecting noticeable impacts in the first quarter of the current fiscal year. As of March 31, 2024, PC Jeweller maintains a network of 60 showrooms (including 6 franchisee showrooms) in 44 cities across 15 states in India.

The company has a market cap of Rs 3,350 crore. As of March 2024, Life Insurance Corporation of India (LIC) owns a 1.45 per cent stake in the company and FIIs have increased their stake to 0.93 per cent compared to 0.78 per cent in December 2023.

PC Jeweller Limited is a jeweller based in New Delhi, India. It started operations in April 2005 with one showroom at Karol Bagh Delhi and 80 showrooms in India. It is a first-generation business promoted by two brothers- Padam Chand Gupta and Balram Garg. It presently has 80 stores in 66 cities across 17 States/UT.