Posted on March 18, 2025, by Niftynews
PC Jeweller shares saw a notable gain of 3.06% on March 18, 2025, following the announcement that its board of directors approved a preferential allotment of 51.7 crore shares to a consortium of lenders, including 14 banks, to settle its outstanding debt of Rs 1,510 crore. The stock opened at Rs 14.09 on the Bombay Stock Exchange (BSE), higher than the previous close of Rs 13.41, and peaked at Rs 14.19 during early trade. As of the latest report, PC Jeweller shares were trading at Rs 13.82.
This move is part of the company’s One-Time Settlement (OTS) agreement with its lenders, which includes both cash and equity components. The debt settlement is aimed at improving the company’s financial position and providing a path to reduce its liabilities. The newly issued shares will be allotted at a price of Rs 29.20 per share, and the shares will rank pari-passu with the existing equity shares of the company.
PC Jeweller’s Strategic Debt Settlement and Financial Health
PC Jeweller had opted for an OTS (one-time settlement) to clear its dues with the consortium of 14 banks. The OTS agreement, signed on September 30, 2024, outlines the terms for settling the debt, including the release of securities and mortgaged properties. By issuing 51.7 crore new shares, the company will significantly reduce its outstanding debt, which has been a critical challenge for PC Jeweller in recent years.
The move to settle the debt and strengthen its balance sheet is seen as a positive step by investors, which was reflected in the positive movement in PC Jeweller shares. The company’s financial turnaround is also supported by recent performance improvements.
Strong Financial Performance Boosts Investor Confidence
For the third quarter of the fiscal year, PC Jeweller reported a consolidated net profit of Rs 147.96 crore, marking a strong recovery from the net loss of Rs 197.98 crore in the same period last year. The company’s total income saw a massive increase to Rs 683.44 crore, up from just Rs 43.48 crore in the previous year’s quarter. This growth highlights the company’s recovery and potential for continued growth despite previous challenges.
The positive financial performance, coupled with the debt settlement, suggests that PC Jeweller is on a path to improved operational stability and financial health. Investors are likely to view this as a sign of confidence in the company’s future prospects.
PC Jeweller’s Expansion and Presence in India
PC Jeweller operates 55 showrooms, including 3 franchisee outlets, across 41 cities in 15 states in India. The company’s widespread presence helps it tap into the growing demand for jewellery, which is a key factor in its ongoing recovery. The settlement of its debt will likely enable the company to focus on expanding its operations and enhancing its customer base in both urban and rural markets.
Should You Buy PC Jeweller Shares?
With the recent surge in PC Jeweller shares following the approval of the debt settlement plan, the company is positioning itself for stronger financial health and growth. The preferential allotment of 51.7 crore shares will not only help settle a significant portion of its outstanding debt but also provide the company with the flexibility to focus on its business growth moving forward.
Investors looking for opportunities in the jewellery sector may view PC Jeweller shares as a buy due to the company’s improved financial position, operational growth, and market recovery. However, as with any investment, it’s important to carefully assess the risks and consult with a financial advisor before making decisions.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always consult with a professional before making any investment decisions.
