Small Cap Consumer Durable Stock Below Rs 100 Issued 48,13,42,500 Warrants For Up To Rs 2705 Cr

PC Jeweller Ltd a small-cap company in the consumer durable sector has announced that the Board of Directors of the company at its meeting held on July 13, 2024 approved 48,13,42,500 warrants for an amount aggregating up to Rs 2705 Cr. PC Jeweller is India's leading fine jewellery manufacturer.

The Board of Directors considered and approved "The issuance and allotment of up to 48,13,42,500 (Forty Eight Crore Thirteen Lakh Forty Two Thousand Five Hundred Only) fully convertible warrants ('Warrants'), carrying a right exercisable by Proposed Allottees to subscribe to one equity share (having face value of Rs 10/‐ each) per Warrant by way of preferential allotment on private placement basis to "Promoter Group" and "Non‐Promoter, Public Category" ("Proposed Allottees"), as detailed in Annexure-I, at an issue price of Rs 56.20 (Rupees Fifty Six and Twenty Paise Only) per Warrant, which is higher than the floor price determined in accordance with the provisions of Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 ("ICDR Regulations") payable in cash for an amount aggregating up to Rs 2705,14,48,500 (Rupees Two Thousand Seven Hundred Five Crores Fourteen Lakh Forty Eight Thousand Five Hundred Only)," said PC Jeweller in a stock exchange filing on 13th July.

"An Extra-Ordinary General Meeting ("EGM") of the Company will be held on August 8, 2024 through Video Conferencing / Other Audio Visual Means to seek approval of Members of the Company for the proposed preferential issue. Notice of the EGM will be sent only through electronic mode to those Members whose e-mail address is registered with Depository Participants / Company / Registrar & Transfer Agent - KFin Technologies Limited ("KFintech")," the company further informed the stock exchanges.

New Track Garments Private Limited, Balram Garg (HUF) and Pooja Garg from the promoter group while Elara India Opportunities Fund, Capri Global Holdings Pvt Ltd, Aries Opportunities Fund Ltd, Hawk Capital Pvt Ltd and Kanta Farms Private Limited were the top proposed allottees of fully convertible warrants.

Earlier this year on April 16th, 2024, the Board of Directors had considered and approved the increase in the authorised share capital and alteration in the capital clause of Memorandum of Association, raising of funds up to Rs 1,500 crore by issue of equity shares by way of a rights issue to the eligible equity shareholders of the company and preferential issue of fully convertible warrants for an aggregate amount of upto Rs 500 crore to a promoter group company.

"The company continues to maintain a wide network of 60 showrooms (including 6 franchisee showrooms) located in 44 cities spread across 15 states across India as on March 31st, 2024. Also, the core strengths of the Company in the form of manufacturing & designing capabilities, manufacturing facilities, skilled staff, soft skills in the form of systems and procedures, customer policies, etc.remain intact. The company is also revamping all other aspects of its business operations such as preparing to launch new jewellery collections, revamping its franchisee business, cost optimization etc," said PC Jeweller in a report.