PC Jeweller shares locked in upper circuit as it secures debt relief from PNB

Shares of the company were locked in upper circuit, up 10%.

While the specific amounts of cash payment and equity stake offered by PC Jeweller are undisclosed, the company confirmed in a regulatory filing that the settlement involves "cash and equity components payable under settlement, release of securities and mortgaged properties etc."

PC Jeweller's troubles came to light in February 2023 when it started defaulting on its loans. The company owed a significant sum – ₹3,278 crore – to banks, including the principal loan amount and accumulated interest. The largest outstanding debts were with SBI (₹1,060 crore), Union Bank of India (₹530 crore), PNB (₹478 crore), and Indian Bank (₹226 crore).

Seeking a solution, PC Jeweller opted for an OTS with the bank consortium. In May 2024, the company reported "the withdrawal of the petition from the National Company Law Tribunal (NCLT) and favourable consideration of its OTS proposal by the banks”.

Looking ahead, PC Jeweller aims to regain market share. The company plans to increase its brand presence through marketing initiatives to rebuild customer confidence.

As of March 31, 2024, PC Jeweller boasts a network of 60 showrooms across 15 Indian states. Financially, PC Jeweller’s current market cap is ₹2,615 Cr. and it reported sales of ₹605 Cr. in FY24. The company believes its primary strengths are manufacturing and design.

"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," PC Jeweller said in a statement.

In a company presentation, it also said that the key focus of the company is to revamp its operations. It plans to launch new jewelry collections, improve its franchise business, and optimising costs.