Multibagger stock at Rs 89.41 from Gems & Jewellery Sector, locked in the upper circuit on July 30; Here’s why!
The stock gave multibagger returns of over 250 per cent from its 52-week low of Rs 25.45 per share.
Today, shares of PC Jeweller Ltd were locked in a 5 per cent upper circuit to an intraday high of Rs 89.41 per share from its previous closing of Rs 85.16. The stock also made a 52-week high of Rs 89.49 while its 52-week low was Rs 25.45. The company's shares saw a spurt in volume by more than 1.50 times on BSE.
PC Jeweller Limited announced that it has received approval from Canara Bank for its One Time Settlement (OTS) proposal. The company had sought this arrangement to resolve its outstanding debt obligations. The approved OTS terms involve a combination of cash payments, equity contributions, and the release of pledged securities and mortgaged properties. This development was disclosed to the public following SEBI's listing regulations.
Earlier, the company secured approval for its One-Time Settlement (OTS) proposal from both Bank of Baroda and IndusInd Bank, allowing them to resolve outstanding dues through a combination of cash and equity payments. The banks will also release any securities or mortgaged properties they hold as collateral. This positive development comes after PC Jeweller's board greenlit the issuance of convertible warrants worth Rs 2,705.14 crore to both promoters and public investors. The funds raised will be used to pay off bank loans (Rs 2,025 crore), address working capital needs (Rs 529.69 crore), manage general corporate expenses (Rs 150 crore), and cover issuance costs (Rs 0.45 crore). Specific details about the warrant allocation between promoters and non-promoters (each receiving 15 crore warrants) will be revealed later.
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About the Company
PC Jeweller Ltd is an Indian company that designs, manufactures, sells and trades gold, platinum, diamond and silver jewellery. They operate across India with multiple brands including Azva, Swarn Dharohar and LoveGold, and even created commemorative medallions for the Cricket World Cup. According to its Quarterly Results (Q4FY24) and annual results (FY24), the company reported a mixed set of numbers.
The company has a market cap of over Rs 4,000 crore. The shares of the company are trading at 1.10 times its book value. As of June 2024, Life Insurance Corporation of India (LIC) owns a 1.45 per cent stake in the company and FIIs have increased their stake to 2.57 per cent compared to 0.93 per cent in March 2024. The stock gave multibagger returns of over 250 per cent from its 52-week low of Rs 25.45 per share and investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.