Shares of PC Jeweller Ltd (PCJ) experienced a notable decline of 6% in Tuesday's trading, reaching a low of Rs 13.17 on the BSE. This market reaction occurred even as the company released an update detailing significant progress in its debt clearance efforts.
According to a regulatory filing, PC Jeweller has successfully repaid all outstanding debt to 10 of its 14 consortium banks. Furthermore, the company has discharged over 96% of the outstanding debt owed to the remaining four banks. This leaves less than 4% of its total outstanding debt, putting PCJ on track to achieve a debt-free status by September.
Debt Clearance Milestones
The jeweller emphasized that all repayments to the initial 10 banks were completed ahead of their scheduled due dates, underscoring its commitment to financial prudence. This strategic move is expected to materially strengthen PC Jeweller's balance sheet and overall financial position, according to company statements.
The latest announcement marks another critical step in PC Jeweller's comprehensive debt-reduction program, which commenced under a Settlement Agreement dated September 30, 2024. In a previous update, the company had reported clearing debt with nine banks and discharging over 96% of the debt from the remaining five. The consistent progress indicates the company is poised to meet its objective of becoming debt-free as targeted.
Company Background
PC Jeweller, a prominent Indian jewellery retail company, was established in April 2005 by founders Padam Chand Gupta and Balram Garg. Headquartered in Karol Bagh, New Delhi, the company initially operated as a private entity before being listed on both the BSE and NSE in December 2012.