Shares of PC Jeweller Ltd. were locked in an upper circuit on Thursday after State Bank of India accepted its proposal for a one-time settlement of outstanding debt.
Terms of the approved settlement include cash and equity component, release of securities and mortgaged properties, according to an exchange filing on Wednesday. SBI sent a letter to the jeweller, informing it of acceptance of the proposal by relevant authorities.
PC Jeweller owes money to a group of lenders, including SBI. In June, the bank had initiated insolvency proceedings against the jeweller at the National Company Law Tribunal over payment default. The company had been in talks with lenders led by SBI, for an out-of-court settlement.
Shares of the jeweller gained 4.96% and were locked in upper circuit. This compares to a 0.34% advance in the NSE Nifty 50 at 10:41 a.m.
The stock has risen 97.58% in the last 12 months. Total traded volume so far in the day stood at 0.9 times its 30-day average. The relative strength index was at 57.
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