Mission Debt-Free: PC Jeweller Reduces Bank Debt by 17% & Approves Allotment of 51,24,68,600 Equity Shares

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Mission Debt-Free: PC Jeweller Reduces Bank Debt by 17% & Approves Allotment of 51,24,68,600 Equity Shares

The stock is up by 23.2 per cent from its 52-week low of Rs 8.66 per share and has given multibagger returns of 300 per cent in 5 years.              

In a significant move toward financial restructuring, the Board of Directors of PC Jeweller Ltd approved the allotment of 51,24,68,600 equity shares to three allottees within the Promoter Group on January 31, 2026. This allotment followed the conversion of 5,12,46,860 fully convertible warrants after the receipt of approximately Rs 216 crore, representing the remaining 75 per cent of the issue price. Notably, the share count and pricing were adjusted to account for the 10-for-1 stock split implemented in December 2024, which reduced the face value from Rs 10 to Re 1 per share. As a result of this transaction, the company’s total paid-up equity share capital has increased to Rs 790.95 crore, with the Promoter Group’s stake rising from 36.85 per cent to 40.94 per cent.

Parallel to this capital infusion, the company has successfully reduced its outstanding Bank debt by approximately 17 per cent under the terms of its Joint Settlement Agreement with consortium lenders. This repayment was funded through the warrant conversion proceeds and internal accruals, marking a major milestone as the company has now cleared the majority of its bank obligations. Management expressed confidence in achieving a debt-free status by the end of FY2026, noting that the remaining debt is well-covered by expected inflows from the conversion of outstanding warrants due by March 2026.

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About the Company

PC Jeweller is a prominent Indian jewellery retailer known for its wide range of gold, diamond, and silver products. Established in 2005, the company specialises in both traditional and contemporary designs, catering to weddings as well as daily wear. It operates through a large network of showrooms across India and an online platform, offering hallmarked and certified jewellery. The brand emphasises craftsmanship and transparency, providing services like jewellery maintenance and customisation to its customers.

The company has a market cap of over Rs 7,700 crore. As of December 2025, State Bank of India (SBI) holds a 1.75 per cent stake and the Union Bank of India owns a 1.13 per cent stake in the company. The stock is up by 23.2 per cent from its 52-week low of Rs 8.66 per share and has given multibagger returns of 300 per cent in 5 years.  

Disclaimer: The article is for informational purposes only and not investment advice.