Pursuant to reports that PC Jeweller Ltd plans to raise capital worth Rs 427 crore through the issue of debentures, the company is seeking its shareholder’s approval, reports add. The company had intended the issue of debentures to DVI Fund Mauritius. The company board had given its nod towards the same.

The additional capital would be employed by the company to increase its present manufacturing set up and its retail presence.

Seeking its shareholders’ approval, company has called an Extra-ordinary General Meeting (EGM) next month. The company is looking to create, offer, issue and allot up to 42,70,000 CCDs with 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), as per reports. The tenure of the Compulsorily Convertible Debentures (CCDs) is slated at a maximum of 18 months from the date of their allotment.

DVI Fund (Mauritius) is a current investor in PC Jeweller and after the conversion of the CCD, the stake would be 9.4 percent from the current 3.72 percent to 9.40 per cent, as per reports.