LIC-backed multibagger penny stock at Rs 70.63: Bank of Baroda agrees on One Time Settlement (OTS) proposal with this jewellery company; details inside!
The stock gave multibagger returns of 177.5 per cent from its 52-week low of Rs 25.45 per share.
PC Jeweller Limited announced that their One-Time Settlement (OTS) proposal to resolve outstanding dues was approved by Bank of Baroda. The bank communicated their approval through a letter dated July 18, 2024, which PC Jeweller received on July 20, 2024. The agreed-upon OTS involves both cash and equity components to be paid by PC Jeweller, along with the release of any securities and mortgaged properties that were held as collateral for the debt.
Additionally, the company announced that IndusInd Bank Limited has agreed to its One Time Settlement (OTS) proposal to clear outstanding dues. The OTS terms include a combination of cash and equity payments, along with the release of securities and mortgaged properties held by the bank. This development was disclosed to the public under SEBI's listing regulations.
Earlier, PC Jeweller's board approved selling up to 48.13 crore convertible warrants for Rs 56.20 each (total Rs 2,705.14 crore) to both promoters and public investors. The funds will be used to settle bank loans (Rs 2,025 crore), cover working capital (Rs 529.69 crore), handle general corporate needs (Rs 150 crore) and issuance expenses (Rs 0.45 crore). Specific details and recipient identities will be provided later, with promoters and non-promoters each buying 15 crore warrants.
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Today, shares of PC Jeweller Ltd surged 5 per cent upper circuit to an intraday high of Rs 70.63 per share from its previous closing of Rs 67.27. The stock’s 52-week high of Rs 73.68 while its 52-week low is Rs 25.45.
PC Jeweller Ltd is an Indian company that designs, manufactures, sells and trades gold, 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 3,200 crore. The shares of the company are trading at 1.15 times its book value. As of March 2024, Life Insurance Corporation of India (LIC) owns a 1.45 per cent stake in the company and FIIs have increased their stake to 0.93 per cent compared to 0.78 per cent in December 2023. The stock gave multibagger returns of 177.5 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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