PC Jeweller has sought shareholders' approval to raise up to Rs 427 crore through issuance of debentures to DVI Fund Mauritius for expansion of the business.
The company has called an Extra-ordinary General Meeting (EGM) on May 9 to take shareholders' nod through special resolution, PC Jeweller said in a filing to the BSE.
Earlier this month, its board had approved the issuance of compulsorily convertible debentures (CCD) for an aggregate amount of up to Rs 427 crore through preferential allotment on private placement basis to DVI Fund Mauritius.
"To meet its requirement of working capital as well as capital expenditure to support business expansion, the company proposes to create, offer, issue and allot up to 42,70,000 CCDs having face value of Rs 1,000 each, in one or more tranches, at par, for an aggregate amount of up to Rs 427 crore to DVI Fund (Mauritius)," PC Jeweller said in an explanatory statement.
The tenure of the Compulsorily Convertible Debentures (CCDs) shall not exceed 18 months from the date of their allotment.
Post conversion of the CCD, the stake of DVI Fund (Mauritius) would increase from 3.72 per cent to 9.40 per cent, while the promoters' stake would come down to 66.38 per cent from 70.55 per cent.
The Delhi-based jewellery firm has three factories and 60 retail stores across the country.
