PC Jeweller Ltd (NSE: PCJEWELLER): There’s good report to PC Jeweller. Kotak Mahindra Bank has approved the one-time settlement (OTS) to pay its debts.
Following this announcement PC Jeweller’s stock rose by 5 percent to Rs 129.26 in the morning trading. This dramatic rise occurred shortly after the company had announced the news on Sunday.
In a regulatory filing PC Jeweller said that Kotak Mahindra Bank in an e-mail sent on 7 September 2024 has expressed its approval of the One-Time Settlement (OTS) proposal presented by the company.
The bank had chosen OTS to settle the outstanding dues. Terms and conditions for the accepted OTS include the release of money, equity component securities as well as mortgaged assets to be sold as part of the settlement.
Settlement Proposal To A Consortium Of 14 Banks
When it released its July quarter earnings the company also announced that it had presented an official settlement request (OTS) to the consortium comprising 14 banks.
The consortium had granted preliminary approval to the OTS subject to acceptance from the respective authorities within their internal systems.
In the initial year of FY 2025, it was reported that the State Bank of India, the bank that is leading, applied to withdraw its petition to the Hon’ble NCLT, Delhi, seeking the initiation of the process for resolution of corporate insolvencies under section 7 under the IBC.
The company stated that the petition was removed. The company also received approval from shareholders to raise Rs 2,705.14 crore by the issue of preferential fully convertible warrants.
The funds will be used to pay off the outstanding bank loans, satisfy working capital requirements, and for general corporate objectives.
The company has concentrated on expanding the brand’s reach. On the 30th of June, 2024 the Company has a robust system of 57 retail stores (including the franchisees of four) covering 42 cities across 15 states.
PC Jeweller said the Company’s main strengths, including its design and manufacturing capabilities, its skilled employees, well-established processes and policies for customers remain unchanged.
Quick Fact
| Company name | PC Jeweller |
|---|---|
| Debt settlement | One-Time Settlement (OTS) approved by Kotak Mahindra Bank |
| OTS approval date | 7 September 2024 |
| Rise in stock | 5% rise to ₹129.26 |
| Settlement includes | Release of money, equity component securities, mortgaged assets |
| Consortium | 14 banks involved |
| SBI action | Withdrawal of NCLT petition |
| Fundraising approval | ₹2,705.14 crore through fully convertible warrants |
| Funds purpose | Pay bank loans, working capital, corporate objectives |
| Retail presence | 57 stores in 42 cities, 15 states |
| Franchise stores | 4 franchise stores |
| Strengths | Design, manufacturing, skilled employees, customer policies |
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