PC Jeweller: PCJ shares falls 6% despite debt clearance update; key details

Shares of PC Jeweller Ltd (PCJ) tanked 6 per cent in Tuesday's trade even as the jeweller said it has cleared and repaid all its outstanding debt with 10 of its 14 consortium banks. In a filing to stock exchanges, PCJ said it has now discharged more than 96 per cent of the outstanding debt of the remaining four banks, adding that it remained on track to become debt-free in September.

PCJ shares fell as much as 5.52 per cent in Tuesday's trade to hit a low of Rs 13.17 on BSE over their previous close of Rs 13.94. The stock opened at Rs 14.16 and climbed to a high of Rs 14.45 during the session. It has hit a 52-week high of Rs 15.38 and a 52-week low of Rs 7.45.

The company said all repayments to the 10 banks were completed ahead of their scheduled due dates. With more than 96 per cent of the outstanding debt of the remaining four banks also discharged, less than 4 per cent of the company's outstanding debt remains. PC Jeweller said the move will materially strengthen its balance sheet and financial position.

Debt clearance

The latest update marks another step in PC Jeweller's debt-reduction process under the Settlement Agreement dated September 30, 2024. In its previous update, the company had said it had cleared and repaid all outstanding debt with 9 of the 14 consortium banks, while more than 96 per cent of the debt of the remaining five banks had also been discharged.

PC Jeweller had earlier set an objective of achieving a debt-free status in September, and the latest update indicates that the company remains on track to meet that target.

PC Jeweller is a leading Indian jewellery retail company founded in April 2005 by Padam Chand Gupta and Balram Garg. Headquartered in Karol Bagh, New Delhi, the company was incorporated as a private company and later listed on the BSE and NSE in December 2012.