New Delhi: PC Jeweler on Tuesday said its board has approved a proposal to raise Rs 2,000 crore through a rights issue and preferential allotment of fully convertible warrants.
The board also approved a proposal to increase the authorized share capital and changes in the capital clause of the memorandum of association at its meeting held on Tuesday, a regulatory filing said.
The company said that out of the total Rs 2,000 crore, its board has approved the PLA to raise Rs 1,500 crore through a rights issue of Rs 10 per equity share to eligible equity shareholders.
The record date for this will be notified later. The issue size of up to Rs 1,500 crore will be subject to regulatory and other approvals, the filing said.
Additionally, the company said the board has approved raising up to Rs 500 crore through preferential allotment of fully convertible warrants.
"The proceeds of the preferential issue will be used to repay the financial liabilities of the company, subject to the approval of the consortium of lenders," the company said.
The company's accounts have been classified as non-performing asset (NPA) by its lenders, including State Bank of India, since June 2021, and the lenders have initiated legal proceedings to recover the dues.
As of December 2023, the company had 55 owned and seven franchised stores. The company's three stores located in Delhi are temporarily closed due to court proceedings.
The board also approved a proposal to increase the authorized share capital and changes in the capital clause of the memorandum of association at its meeting held on Tuesday, a regulatory filing said.
The company said that out of the total Rs 2,000 crore, its board has approved the PLA to raise Rs 1,500 crore through a rights issue of Rs 10 per equity share to eligible equity shareholders.
The record date for this will be notified later. The issue size of up to Rs 1,500 crore will be subject to regulatory and other approvals, the filing said.
Additionally, the company said the board has approved raising up to Rs 500 crore through preferential allotment of fully convertible warrants.
"The proceeds of the preferential issue will be used to repay the financial liabilities of the company, subject to the approval of the consortium of lenders," the company said.
The company's accounts have been classified as non-performing asset (NPA) by its lenders, including State Bank of India, since June 2021, and the lenders have initiated legal proceedings to recover the dues.
As of December 2023, the company had 55 owned and seven franchised stores. The company's three stores located in Delhi are temporarily closed due to court proceedings.
