In response to PC Jeweller's default of more than 3,466 crore rupees ($415 million) that was disclosed in October, the State Bank of India (SBI) has seized custody of two its prime properties in New Delhi.

An SBI official was quoted in a Free Press Journal report as noting that the action was a calculated strategy to get back some of the $140 million (or 1,168.90 crore rupees) that PC Jeweller owes.

Following the financial setback, PC Jeweller experienced operational interruptions, which caused its fiscal year 2024 second-quarter revenues to drop drastically. The company's Q2 FY24 revenues showed a sharp contrast in performance, falling from&nbsp;836 crore rupees ($100 million) in the same quarter the previous year to a meagre&nbsp;33 crore rupees ($39 million).&nbsp;

SBI is aggressively using the National Company Law Tribunal (NCLT) and the Debt Recovery Appellate Tribunal as legal channels to handle the growing debts. The bank wants to get back a sizable amount of its unpaid debt to PC Jeweller, or 1,267 crore rupees ($152 million).&nbsp;

PC Jeweller has taken strong measures in reaction to the financial crisis, closing seventeen stores total—thirteen of which are owned and three of which are franchises. The 152 crore rupees ($18 million) in reported losses highlight the difficulties the Indian jewellery industry faces in resolving credit and market trust issues. In order to lessen its financial load, PC Jeweller is concurrently negotiating out-of-court settlements with a number of institutions.&nbsp;

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In response to PC Jeweller's default of more than 3,466 crore rupees ($415 million) that was disclosed in October, the State Bank of India (SBI) has seized custody of two its prime properties in New Delhi.

In response to PC Jeweller's default of more than 3,466 crore rupees ($415 million) that was disclosed in October, the State Bank of India (SBI) has seized custody of two its prime properties in New Delhi. An SBI official was quoted in a Free Press Journal report as noting that the action was a calculated strategy to get back some of the $140 million (or 1,168.90 crore rupees) that PC Jeweller owes. Following the financial setback, PC Jeweller experienced operational interruptions, which caused its fiscal year 2024 second-quarter revenues to drop drastically. The company's Q2 FY24 revenues showed a sharp contrast in performance, falling from 836 crore rupees ($100 million) in the same quarter the previous year to a meagre 33 crore rupees ($39 million). SBI is aggressively using the National Company Law Tribunal (NCLT) and the Debt Recovery Appellate Tribunal as legal channels to handle the growing debts. The bank wants to get back a sizable amount of its unpaid debt to PC Jeweller, or 1,267 crore rupees ($152 million). PC Jeweller has taken strong measures in reaction to the financial crisis, closing seventeen stores total—thirteen of which are owned and three of which are franchises. The 152 crore rupees ($18 million) in reported losses highlight the difficulties the Indian jewellery industry faces in resolving credit and market trust issues. In order to lessen its financial load, PC Jeweller is concurrently negotiating out-of-court settlements with a number of institutions. WATCH WION LIVE HERE

SBI seizes PC Jeweller's New Delhi assets as loan default hits $415 million 

By Jitesh Kumar Jha

PC Jeweller's shares have fallen some 76 per cent so far in 2008. The slide was triggered by the negative sentiment for the sector following the Punjab National Bank scam by jewellery firms Nirav Modi and Gitanjali Gems.&nbsp;

PC Jeweller shares dipped further after reports of raids on their properties, and that MD Balram Garg was being questioned by the CBI.&nbsp;

The Zee Group spoke to Garg, who said his company's shares wee falling because Fidelity, which had a 9.5 percent stake in the company, recently sold a certain percentage of it. Excerpts from the interview:&nbsp;

 
Q: Rumours are doing the rounds that Balram Garg of PC Jeweller has been arrested and PC Jeweller is being raided at multiple locations. Would you like to say something about that?

A: See, I can't comment on rumours. I really don't know where they come from and what is the basis of that. PC Jeweller is working in the same way as it was functioning till date. Even I am talking with you.&nbsp; 
&nbsp; 
Q: Would you like to say something about the reported raids? 
A: The reports are completely wrong. Why will someone raid us or our company. 
&nbsp; 
Q: Have you received any notice from any investigative agency including SEBI and CBI? 
A: No, I have not received any such notice.&nbsp; 
&nbsp; 
Q: There has been talks that your company has some relation with Vakrangee. The relation is also a matter of concern in the market. What is your connection with Vakrangee? 
A: We have ended our connection with Vakrangee and at present, there is no connection with it.&nbsp; 
&nbsp; 
Q: The share prices of PC Jeweller has fallen below Rs 100 and that is a matter of concern for your investors. Would you like to say something to your investors? 
A: I would just like to say that don't go by the rumours and have faith in us like you have always had.&nbsp; 
&nbsp; 
Q: Mr Garg, your stock has seen a sharp fall in the last few days. Is everything okay with your company? As MD of PC Jeweller, would you like to issue a clarification on the fall? Can you think of a reason for the sharp fall? 
A: See, we have seen that Vakrangee, which was holding 9.5 per cent stake in the past, has sold a certain percentage of it and I feel the sharp fall is related to the same. That has also created some more selling pressure. Such falls are always visible in every company when such big holdings are sold off.&nbsp; 
&nbsp; 
Q: But the matter of concern is that they have laid off just 1 to 1.25 per cent of their holdings. Did you talk with Fidelity to understand why they sold?&nbsp; 
A: No, we didn't have any talk on the issue but I can say that they would have sold a certain percentage of their holding because it was an active week.&nbsp; 
&nbsp; 
Q: Are you able to say that none of your promoters have sold their stakes in PC Jeweller in the last 10-15 days? 
A: Yes, I can say that none of them has sold any stake in the company.&nbsp; 
&nbsp; 
Q: Do you think the date for the board meeting, May 25, is too late? Why don't you call a board meeting in the next 2-3 days and go in for a buyback of the stakes? 
A: We are thinking about it now.&nbsp; 
&nbsp; 
Q: I would like to say something from the perspective of the small investors. Whenever you announce the buyback, maybe via a tender or an open market purchase, if the promoters are not allowed to participate in the buyback, it will help the confidence of your investors. Can I hope that you will go in for that request? 
A: I can confirm that the promoters are not going to participate in it.

PC Jeweller's shares have fallen some 76 per cent so far in 2008. The slide was triggered by the negative sentiment for the sector following the PNB scam; then the shares dipped further after reports of raids on their properties, and that Garg was being questioned by the CBI

By Jitesh Kumar Jha PC Jeweller's shares have fallen some 76 per cent so far in 2008. The slide was triggered by the negative sentiment for the sector following the Punjab National Bank scam by jewellery firms Nirav Modi and Gitanjali Gems. PC Jeweller shares dipped further after reports of raids on their properties, and that MD Balram Garg was being questioned by the CBI. The Zee Group spoke to Garg, who said his company's shares wee falling because Fidelity, which had a 9.5 percent stake in the company, recently sold a certain percentage of it. Excerpts from the interview: Q: Rumours are doing the rounds that Balram Garg of PC Jeweller has been arrested and PC Jeweller is being raided at multiple locations. Would you like to say something about that? A: See, I can't comment on rumours. I really don't know where they come from and what is the basis of that. PC Jeweller is working in the same way as it was functioning till date. Even I am talking with you. Q: Would you like to say something about the reported raids? A: The reports are completely wrong. Why will someone raid us or our company. Q: Have you received any notice from any investigative agency including SEBI and CBI? A: No, I have not received any such notice. Q: There has been talks that your company has some relation with Vakrangee. The relation is also a matter of concern in the market. What is your connection with Vakrangee? A: We have ended our connection with Vakrangee and at present, there is no connection with it. Q: The share prices of PC Jeweller has fallen below Rs 100 and that is a matter of concern for your investors. Would you like to say something to your investors? A: I would just like to say that don't go by the rumours and have faith in us like you have always had. Q: Mr Garg, your stock has seen a sharp fall in the last few days. Is everything okay with your company? As MD of PC Jeweller, would you like to issue a clarification on the fall? Can you think of a reason for the sharp fall? A: See, we have seen that Vakrangee, which was holding 9.5 per cent stake in the past, has sold a certain percentage of it and I feel the sharp fall is related to the same. That has also created some more selling pressure. Such falls are always visible in every company when such big holdings are sold off. Q: But the matter of concern is that they have laid off just 1 to 1.25 per cent of their holdings. Did you talk with Fidelity to understand why they sold? A: No, we didn't have any talk on the issue but I can say that they would have sold a certain percentage of their holding because it was an active week. Q: Are you able to say that none of your promoters have sold their stakes in PC Jeweller in the last 10-15 days? A: Yes, I can say that none of them has sold any stake in the company. Q: Do you think the date for the board meeting, May 25, is too late? Why don't you call a board meeting in the next 2-3 days and go in for a buyback of the stakes? A: We are thinking about it now. Q: I would like to say something from the perspective of the small investors. Whenever you announce the buyback, maybe via a tender or an open market purchase, if the promoters are not allowed to participate in the buyback, it will help the confidence of your investors. Can I hope that you will go in for that request? A: I can confirm that the promoters are not going to participate in it.

The CBI is not questioning me, we are not being raided: PC Jeweller MD Balram Garg

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SBI seizes PC Jeweller's New Delhi assets as loan default hits $415 million

The CBI is not questioning me, we are not being raided: PC Jeweller MD Balram Garg