PC Jeweller Shares: Shares of PC Jeweller surged by 10% to hit the upper circuit after the company announced on July 7 that Punjab National Bank (PNB) had approved its One Time Settlement (OTS) proposal. PNB, a key lender in PC Jeweller’s consortium, conveyed its approval in a letter dated July 6.
PC Jeweller’s stock has declined more than 5% in the last six months, underperforming the Nifty 50, which has risen over 13% during the same period.
The jewellery firm, facing financial challenges, disclosed that the OTS terms involve cash, equity components, and provisions for releasing securities and mortgaged properties held by banks.
This development follows State Bank of India’s (SBI) acceptance of PC Jewellers’ OTS proposal three months ago.
PC Jeweller encountered financial difficulties in February 2023 when banks demanded repayment of loans totaling Rs 3,466 crore after the company’s loan default disclosures.
As per its 2021-22 annual report, PC Jeweller borrowed from 14 banks, including SBI, Indian Bank, Union Bank, and Punjab National Bank.
Major lenders include SBI with Rs 1,060 crore outstanding, Union Bank of India with Rs 530 crore, Punjab National Bank with Rs 478 crore, and Indian Bank with Rs 226 crore.
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