PC Jeweller Agrees To Raise Funds of Rs 500 Cr, Expands Authorised Capital Alongside Strong Financials

In India, PC Jeweller Ltd is among the top jewellery brands. The company announced a new strategic initiative aimed at reinforcing its capital structure as well as ramping up its business recovery. To this end, the Board of Directors sanctioned the raising of the authorised share capital to Rs 1,310 crore from Rs 1,260 crore by creating an additional 50 crore equity shares at the face value of Rs 1 each. Thus, in the company's Memorandum of Association, there will be an amendment regarding the capital clause which shall enable the company to implement its financial plans as well as add value in the long term.

To improve its financial concerns, PC Jeweller plans to raise up to Rs 500 crore through the private placement of preferential allotment shares. Under the scheme, the promoter group led by Balram Garg will be issued with 9.72 crore fully convertible warrants at Rs 18 per warrant, fetching about Rs 175 crore. At the same time, the company will issue over 18 crore equity shares to non-promoter investor Capital Ventures Private Limited at the same price, bringing in approximately Rs 325 crore. Subject to regulatory and shareholder approval, the preferential issue would dramatically change the shareholding structure of the company post-dilution and injection of fresh capital helping meet its strategic objectives.

The announcement comes just as the company had shown a remarkable turnaround in its financial performance. In PC Jeweller's case, during the quarter ending on March 31st, 2025, they reported a net sales of Rs 699 crores which was a year-on-year increase of 1,356 percent, along with a net profit of Rs 95 crores. This was an enormous improvement compared to the net loss of Rs 122 crores in the same quarter last year. On a yearly basis, net sales were Rs 2,245 crores for the company in FY25, which was a 272 per cent growth compared to FY24. The bottom line also showed strong recovery as the company reported a net profit of Rs 578 crores for FY25 after a loss of Rs 629 crores in FY24.

This impressive performance, driven by customer demand, especially for wedding and festive purchases, comes amid gold price volatility. The company's renewed customer trust and ongoing operational transformation were important factors for these outcomes. In parallel with revenue growth, PC Jeweller has also made significant strides in deleveraging. During FY25, the company reduced its outstanding debt by more than 52 per cent, lowering it to Rs 2,151 crore from Rs 4,150 crore the previous year. During the most recent quarter, a further 7.5% reduction was achieved. The company is fairly optimistic about becoming completely debt-free by the end of FY26.

PC Class Jeweller's current market position and standing have also been enhanced by its over Rs 12,000 crore market cap, furthered by the 10:1 stock split executed in December 2024, which improved stock liquidity as well as investor access. Since the split, PC Jeweller's stock has delivered stellar returns of over 230 per cent from its 52-week low of Rs 5.88 per share, and has surged nearly 1,000 per cent over the last five years. Stakeholders holding shares, such as the State Bank of India and the Life Insurance Corporation of India hold 2.70 per cent and 1.03 per cent stakes in the company, respectively.

Established in India, PC Jeweller retails and manufactures a variety of gold, silver, diamond, and platinum jewellery through its brands Azva, Swarn Dharohar, and LoveGold.