PC Jeweller , a prominent player in India's jewelry market, has announced a significant move to bolster its financial position. The company's Board of Directors has approved a comprehensive plan to raise funds up to ₹500 crore through a preferential allotment on a private placement basis.

Fundraising Details

The company plans to raise a total of ₹499.99 crore through two key components:

1. Fully Convertible Warrants: PC Jeweller will issue up to 9,72,22,222 fully convertible warrants to the promoter group. These warrants, priced at ₹18.00 each, are expected to raise approximately ₹175.00 crore.

2. Equity Shares: The company will also issue up to 18,05,55,555 equity shares to non-promoter, public category investors at ₹18.00 per share, aiming to raise about ₹325.00 crore.

Impact on Shareholding Structure

The preferential allotment, if fully subscribed, will lead to a significant change in the company's shareholding pattern:

Key Points of the Fundraising Plan

• The issue price of ₹18.00 per warrant and equity share is higher than the floor price determined as per SEBI regulations.
• The fully convertible warrants have a tenure of 18 months from the date of allotment.
• Each warrant carries the right to subscribe to one equity share, which can be exercised within the 18-month period.

Corporate Actions

In addition to the fundraising plan, PC Jeweller's Board has approved:

1. An increase in the authorized share capital from ₹1,260.00 crore to ₹1,310.00 crore.
2. The creation of 50 crore additional equity shares of ₹1.00 each.

Next Steps

The company will seek shareholders' approval for these decisions through a postal ballot. The notice for the same will be sent electronically to eligible shareholders, and will also be available on the company's website and stock exchange platforms.

This strategic move by PC Jeweller appears aimed at strengthening its financial position and potentially fueling growth initiatives. However, the specific use of the funds has not been disclosed in the available information.

PC Jeweller Limited , a prominent player in the Indian jewelry market, has announced a significant move to bolster its financial position. The company's Board of Directors has approved a comprehensive plan to raise funds up to ₹500 crore through a preferential allotment of securities.

Key Highlights of the Fund-Raising Plan

• Total Fund-Raising Target: PC Jeweller aims to raise up to ₹499.99 crore through the issuance of fully convertible warrants and equity shares.
• Warrants Issuance: The company plans to issue up to 9,72,22,222 fully convertible warrants to the promoter group at ₹18.00 per warrant, potentially raising ₹174.99 crore.
• Equity Shares Allotment: Additionally, PC Jeweller will allot up to 18,05,55,555 equity shares to non-promoter public category investors at ₹18.00 per share, which could bring in ₹324.99 crore.

Details of the Preferential Allotment

The preferential allotment is structured in two parts:

1. Promoter Group Allocation:

   • Allottee: Balram Garg (Promoter)
   • Number of Warrants: 9,72,22,222
   • Price per Warrant: ₹18.00

2. Non-Promoter Public Category Allocation:

   • Allottee: Capital Ventures Private Limited
   • Number of Equity Shares: 18,05,55,555
   • Price per Share: ₹18.00 (including a premium of ₹17.00 per share)

Impact on Shareholding Structure

Post-allotment, assuming full conversion of warrants and issuance of all proposed equity shares, the company's shareholding structure is expected to change as follows:

Additional Corporate Actions

In conjunction with the fund-raising plan, PC Jeweller has also approved:

1. An increase in the authorized share capital from ₹1,260 crore to ₹1,310 crore.
2. Alteration of the Capital Clause in the Memorandum of Association to reflect this increase.

Next Steps

The company will seek shareholders' approval for these proposals through a postal ballot. The notice for the same will be sent electronically to eligible shareholders, and will also be available on the company's website and stock exchange platforms.

This strategic move by PC Jeweller to raise substantial funds through preferential allotment demonstrates the company's commitment to strengthening its financial position. The infusion of capital is likely to provide the jewelry retailer with the necessary resources to support its business operations and future growth initiatives.