FIIs bought 76,18,330 shares: LIC-backed multibagger stock under Rs 100; Company gets acceptance of OTS proposal by Indian Bank
The stock gave multibagger returns of 244 per cent from its 52-week low of Rs 25.45 per share
PC Jeweller Limited has announced a successful resolution of its outstanding debt with the Indian Bank. The company has entered a One Time Settlement (OTS) agreement with the bank. As part of this agreement, PC Jeweller will make a payment to Indian Bank, which includes a combination of cash and equity shares. In return, Indian Bank will release securities and properties pledged by the company as collateral for the loan. This development is a significant step forward for PC Jeweller in addressing its financial obligations.
Previously, the company had secured OTS approvals from IDFC First Bank, Canara Bank, Bank of Baroda, Indian Overseas Bank and IndusInd Bank per terms encompassing cash payments, equity contributions, and the release of pledged securities and mortgaged properties.
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.
Today, shares of PC Jeweller Ltd gained 2 per cent to an intraday high of Rs 87.54 per share from its previous closing of Rs 85.81. The stock’s 52-week high is Rs 98.57 while its 52-week low was Rs 25.45.
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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 3,800 crore. As of June 2024, Life Insurance Corporation of India (LIC) owns a 1.45 per cent stake in the company and FIIs bought 76,18,330 shares and increased their stake to 2.57 per cent compared to 0.93 per cent in March 2024. The stock gave multibagger returns of 244 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.
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