PC Jeweller Limited has submitted its Monitoring Agency Reports for the quarter ended June 30, 2026 (Q1 FY27), detailing the utilization of proceeds from its preferential issues. The reports, issued by CARE Ratings Limited, cover two key preferential issuances approved by shareholders in August 2024 and August 2025. The documents outline the progress of the utilization of the aggregate amount raised, which was Rs. 2702.11 crore from one issue and Rs. 500 crore from another. Key findings indicate the full utilization of proceeds towards the intended objects, including general corporate purposes and repayment of outstanding debt. Minor deviations in fundraising were noted due to warrant undersubscription but are not expected to affect the completion of objects.
Monitoring Agency Reports Filed for Preferential Issues
PC Jeweller Limited has officially filed its Monitoring Agency Reports for the quarter ending June 30, 2026 (Q1 FY27), as required by SEBI regulations. These reports, prepared by CARE Ratings Limited, provide an update on the utilization of funds raised through two significant preferential issues. The first issue, approved in an EGM on August 08, 2024, involved Fully Convertible Warrants, while the second, approved via postal ballot on August 10, 2025, included both Fully Convertible Warrants and Equity Shares.
Fund Utilization Details – Rs. 2702.11 Crore Issue
For the preferential issue aggregating to Rs. 2702.11 crore, the Monitoring Agency Report highlights the following:
- Utilization of Proceeds: Funds have been utilized as per the disclosures in the offer document. The proceeds have been fully allocated towards General Corporate Purpose, Working Capital requirements, and issue-related expenses.
- Financial Deviations: A shortfall in fundraising occurred due to the undersubscription of warrants by 0.11% and the non-exercise of warrant conversion options by holders, leading to a ~7% shortfall in the total funds raised. However, the company has not revised the costs of its objects due to this shortfall, with the remaining debt repayment expected through internal accruals. The Board of Directors indicated that the shortfall in funds will not affect the pending objects of the issue.
- Object Progress: The objects monitored include Repayment of banker’s outstanding debts, Working capital requirement, General Corporate Purpose, and Issue related expenses. All objects were either completed in Q1FY27 or are proceeding as per revised timelines, with no significant delays or deviations.
Fund Utilization Details – Rs. 500 Crore Issue
For the preferential issue aggregating to Rs. 500 crore, the Monitoring Agency Report indicates:
- Utilization of Proceeds: As of Q1FY27, there has been no utilization of funds. The funds are expected to be utilized for working capital requirements and repayment of outstanding debt.
- Financial Deviations: The report notes that the current share price being below the warrant exercise price may lead subscribers to let the warrants lapse, potentially affecting the means of finance for the objects. However, the Board of Directors expressed confidence that the promoter subscriber will exercise their option, and the object completion timeline for debt repayment remains until September 2026.
- Object Progress: The primary objects are Repayment of banker’s outstanding debts and Working capital requirement. The repayment of outstanding debt is underway, with the company having prepaid debt to five consortium banks. The working capital requirement object is ongoing.
These reports provide transparency on the financial activities and strategic execution following the preferential issuances by PC Jeweller Limited.
Source: BSE
