IndusInd Bank Accepts PC Jeweller's One-Time Settlement Proposal For Unsettled Dues

PC Jeweller Ltd.'s one-time settlement proposal submitted to IndusInd Bank Ltd. was accepted on Monday. The company had opted for OTS to settle the outstanding dues.

The terms and conditions of the approved one-time settlement include cash and equity components payable under settlement and the release of securities and mortgaged properties, the company said in an exchange filing. However, the company did not disclose the details of the settlement proposal.

This comes days after Punjab National Bank approved the company's proposal to settle the outstanding dues through a one-time settlement.

The board of directors on Saturday approved the plan to raise Rs 2,705 crore through issuing warrants on a preferential basis to promoters and investors. The board approved the issuance and allotment of up to 48,13,42,500 fully convertible warrants by way of preferential allotment on a private placement basis to be issued at Rs 56.20 apiece.

Out of the total warrants, the proposal is to issue 15 crore warrants to the promoter group. The company will use the funds mainly to settle bank loans and for working capital requirements.

Shares of PC Jeweller closed 2.01% higher at Rs 71.09 apiece, as compared to a 0.35% advance in the NSE Nifty 50.