PC Jeweller board nods ₹500 crore equity fundraising from Capital Ventures, promoter

PC Jeweller’s board of directors on Thursday approved the company’s plans to raise ₹500 crore equity from promoters and Capital Ventures to prepay its loan, as part of its broader strategy to become debt-free by the end of the current fiscal year.

The company, in a regulatory filing, announced that its board has approved the fundraising of up to ₹500 crore by way of preferential allotment on a private placement basis. Its board approved the issuing and allotting of up to 9.72 crore fully convertible warrants convertible into an equivalent number of fully paid-up equity shares of the company to the promoter Balram Garg at an issue price of ₹18 per warrant. Garg will invest up to ₹175 crore in the company.

The board also approved issuing and allotting up to 18.05 crore shares to the person belonging to the 'Non-Promoter, Public Category', by way of preferential allotment on a private placement basis, at ₹18 per share, for an amount aggregating up to ₹325 crore. The company will seek approval from shareholders through a postal ballot.

"We will use this amount to prepay the debt. We are progressing on the path of becoming debt-free by March next year," Delhi-based PC Jeweller's MD Balram Garg told PTI.

PC Jeweller has expressed confidence in its plan to become debt-free in the current fiscal year. The company reduced its bank loans by over half to ₹1,775 crore in the previous fiscal year.

In September last year, PC Jeweller executed a settlement agreement with a consortium of 14 banks led by SBI to clear its outstanding loan, which was nearly ₹4,100 crore as of March 31, 2024.

On the back of this loan settlement, the company posted a consolidated net profit of ₹577.70 crore in the fiscal year that ended on March 31, 2025. In the fiscal 2023-24, the company posted a net loss of ₹629.36 crore.

Further, PC Jeweller’s total income in FY25 climbed to ₹2,371.87 crore from ₹669.87 crore in FY24. PC Jeweller has 52 showrooms, out of which 49 are company-owned.

Earlier this month, on July 4, the company reported revenue growth of nearly 80% during the first quarter of the current fiscal year (April-June), driven by strong demand despite volatile, soaring gold prices. The company said that it will become debt-free this fiscal year.

"For achieving its target, the company has further reduced its outstanding debts towards its bankers by another approximately 7.50% during the June quarter," the company said.

PC Jeweller said that it witnessed high demand for its products as consumers continued to purchase jewellery for weddings and festivals.

Shares of PC Jeweller jumped 5% to an intraday high of ₹19.40 apiece on Thursday to settle 1.63% up at ₹18.73 apiece on the NSE. The company was placed under the short-term Additional Surveillance Measure (ASM) by both the BSE and NSE this week.