PC Jeweller Ltd has cleared and repaid all outstanding debt owed to one more consortium bank, moving closer to its target of becoming debt-free in the current month.
The repayment has been completed under the terms of the Settlement Agreement dated September 30, 2024. The company said the repayment was made ahead of the scheduled due date.
Nine of 14 banks cleared
With the latest repayment, PC Jeweller has now cleared all outstanding debt of nine of the 14 consortium banks.
The company said all these repayments were completed ahead of their respective scheduled due dates.
Over 96% debt already repaid
PC Jeweller has also discharged more than 96% of the outstanding debt owed to the remaining five consortium banks.
This leaves less than 4% of the outstanding debt to be repaid to these five banks.
Debt-free target this month
The company remains on track to clear the remaining debt within the current month.
PC Jeweller said achieving debt-free status would materially strengthen its balance sheet and improve its overall financial position.
The continued debt reduction is part of the company’s objective to complete its financial restructuring and move towards a stronger balance sheet.
Fund raising
The Board of Directors and shareholders approved a capital raise of up to ₹1,000 crore through a Qualified Institutions Placement.
The shareholders also approved a resolution through postal ballot for an increase in the company’s authorised share capital to ₹1,460 crore.