PC Jeweller To Raise Rs 500 Crore Via Preferential Allotment
In line with the fundraise, PC Jeweller has also increased its authorised share capital.
PC Jeweller Ltd. announced on Thursday plans to raise nearly Rs 500 crore through a preferential allotment of equity shares and warrants on a private placement basis, according to its exchange filing.
The company will issue up to 9.72 crore fully convertible warrants to its promoter group at Rs 18 per warrant, amounting to Rs 175 crore. It will also issue up to 18.05 crore equity shares to non-promoter public investors at the same price, aggregating to Rs 325 crore.
In line with the fundraise, PC Jeweller has also increased its authorised share capital from Rs 1,260 crore to Rs 1,310 crore by creating an additional 50 crore equity shares.
The issue price for both warrants and shares is higher than the floor price as per SEBI regulations, and the allotment is subject to shareholder and regulatory approvals.
Shares of the company had recently taken a beating after both the BSE and NSE placed the stock under the short-term Additional Surveillance Measure framework.
The ASM framework is designed to enhance market integrity and safeguard investor interests by monitoring and curbing excessive volatility in stock prices.
Prior to this decline, PC Jeweller's stock had been on an upward trajectory, buoyed by a positive business update. The company reported a robust performance for the recently concluded quarter, attributing its success to strong customer trust and goodwill.
Share price of PC Jeweller ended 1.63% higher on Thursday at Rs 18.73 apiece, as compared to a 0.47% decline in the benchmark NSE Nifty 50.
