PC Jeweller shares surge 10% on block deal

Shares of PC Jeweller soared 10% on July 9 following a significant block deal. Bloomberg data revealed that 1.9 million shares changed hands, though the buyers and sellers remain unknown.

The stock also hit the 10% upper circuit in the previous session after the company announced receiving approval from Punjab National Bank (PNB) for its One Time Settlement (OTS) proposal. PNB, one of the key lenders in the consortium, communicated its approval on July 6.

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The OTS terms include both cash and equity components, as well as the release of securities and mortgaged properties held by the banks. This approval follows the acceptance of a similar proposal by the State Bank of India (SBI) over three months ago.

At 9:45 am, PC Jeweller’s shares were trading over 7% higher at Rs 60.24 on the NSE.

PC Jeweller has faced challenges since February last year when banks recalled loans amounting to Rs 3,466 crore following the company’s loan default disclosures. According to the company’s 2021-22 annual report, it had taken loans from 14 banks, including SBI, Indian Bank, Union Bank, and Punjab National Bank.