PC Jeweller stock sees only buyers on hitting its upper circuit after Bank of India shared its approval for a one-time settlement of its outstanding dues.
"The terms and conditions of OTS include cash and equity components payable under settlement, release of securities and mortgaged properties etc. With this approval, all the fourteen consortium member banks have approved the OTS proposal submitted earlier," said PC Jeweller in a filing with the bourses.
At 1.10 pm, PC Jeweller shares were quoting Rs 169.5 at its five percent upper circuit on the NSE.
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PC Jeweller's troubles began in February 2023, when banks decided to recall loans advanced to it after it was revealed in a filing that the company had defaulted on loans worth Rs 3,466 crore from banks and financial institutions.
The company, in its annual report for fiscal 2021-22, stated that it had borrowed money from 14 banks, including SBI, Indian Bank, Union Bank and Punjab National Bank. In the annual report, the company said it owed the banks Rs 3,278 crore, which included the interest and the base amount.
The largest lenders are 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.
PC Jeweller on September 24 said its board will meet on September 30 to consider a sub-division or stock split of its existing equity shares.
At the meeting, the board will consider and approve the alteration in the share capital by splitting the equity shares having face value of Rs 10 into smaller denominations, PC Jeweller said in an exchange filing.
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