PC Jeweller announced it has repaid more than 96% of its total outstanding bank debt and is on track to become debt-free this quarter, according to livemint.com. Following the announcement, the company's shares rebounded nearly 3% from the day’s low, trading around ₹9.30 after opening at ₹9.21 and dipping to ₹9.04 earlier in the session.
The company has been systematically clearing its liabilities, having already repaid all outstanding debt for 5 out of the 14 banks in its consortium. This progress was communicated through official disclosures, signaling a significant reduction in financial obligations. The stock’s recovery during the trading day reflected investor confidence in the company’s efforts to improve its balance sheet.
This move is significant in the context of PC Jeweller’s ongoing financial restructuring and efforts to stabilize its operations. The jewellery sector has seen several companies struggle with high leverage, and PC Jeweller’s near debt-free status could position it more competitively. The stock’s performance after the announcement highlights market responsiveness to debt reduction milestones in the sector.
PC Jeweller’s next financial update will provide clarity on whether it achieves full debt-free status by the end of the current quarter, a key milestone for the company’s turnaround strategy, as reported by livemint.com.