Fine jewellery brand PC Jeweller’s board of directors has approved a proposal to raise a total of Rs 2,000 crore. The funds will be raised through the preferential allotment of fully convertible warrants and rights issues.
“The proceeds of the preferential issue will be utilised towards the payment of financial liabilities of the company, subject to the approval of the consortium of the lenders,” said the business in a statement, the Press Trust of India reported.
The business’ board of directors also approved a proposal to increase the authorised share capital as well as alter the capital clause of the business’ memorandum of association, according to regulatory filings, ET Bureau reported. The record date for the fundraising will be set at a later date.
The board of directors for PC Jeweller has approved the raising of Rs 1,500 crore through a rights issue of equity shares priced at Rs 10 per piece. These would be sold to eligible equity shareholders. The issue size, up to Rs 1,500 crore, will subsequently be put up for regulatory approval.
The remaining Rs 500 crore would be raised by preferential allotment of fully convertible warrants. PC Jeweller’s accounts have become non-performing assets since 2021 and its lenders, including the State Bank of India, are pursuing proceedings to recover their money, the Press Trust of India reported.
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