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2 min read | Updated on July 09, 2024, 20:49 IST
SUMMARY
PC Jeweller shares rallied 10% in the previous trading session, July 8, after the company informed the exchanges that it had received approval for a ‘One Time Settlement’ (OTS) proposal by the Punjab National Bank.
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PC Jeweller shares hit 10% upper circuit limit, extends gains for second day
PC Jeweller shares rallied 10% in the previous trading session, July 8, after the company informed the exchanges that it had received approval for a ‘One Time Settlement’ (OTS) proposal by the Punjab National Bank.
The terms and conditions of the approved OTS include cash and equity components payable under settlement, release of securities and mortgaged properties. The specific amount of the cash payment and equity stake offered by PC Jewellers is not clear.
PC Jeweller's troubles became apparent in February 2023 when the company started defaulting on its loan. It owed ₹3,278 crore to banks, including the principal loan amount and accumulated interest.
In February 2023, PC Jeweller informed the stock exchanges that its accounts had been classified as Non-Performing Assets with its bankers since June 2021 and the resolution process has been underway since then.
Punjab National Bank is among its biggest lenders with an outstanding debt of ₹478 crore.
On June 15, the jewellery firm informed the exchanges that the Union Bank of India had also conveyed its approval of the OTS offer.
State Bank of India and Union Bank are among the consortium banks with an exposure in the PC Jeweller loan default.
PC Jeweller has a network of over 60 showrooms across 15 Indian states and reported sales of ₹605 Crore in FY24. As of July 9, 2024, the company's current market cap is over ₹2,800 crore.
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