PC Jewellers' shares experienced a remarkable surge of 10%, reaching Rs 56.2 in Monday's Bombay Stock Exchange (BSE) trading session.

This impressive gain followed the announcement that Punjab National Bank (PNB) had approved the company's one-time settlement (OTS) proposal for its outstanding dues.

The settlement terms include both cash and equity components, the release of securities, and mortgaged properties.

However, detailed specifics regarding the exact amount of outstanding dues with other banks and the precise terms of the OTS were not disclosed by the company.

The announcement highlighted that "Punjab National Bank, the third largest bank after State Bank of India among the consortium banks of the company in terms of its exposure, has conveyed its approval to the One-Time Settlement (OTS) proposal submitted by the company."

This approval marks a significant milestone for PC Jewellers, indicating a positive step towards resolving its financial obligations.

In an investor presentation held in late May, PC Jewellers mentioned that the withdrawal of the petition from the National Company Law Tribunal (NCLT) by State Bank of India (SBI) and the favorable consideration of its OTS proposal by other banks were promising developments.

The company stated, "The company has again started focusing on increasing its brand presence and has initiated marketing efforts, which are having a visible impact in the ongoing quarter."

PC Jewellers continues to maintain a robust network of 60 showrooms, including 6 franchisee showrooms, spread across 44 cities in 15 states in India as of March 31, 2024.

The company emphasized that its core strengths, including manufacturing and designing capabilities, skilled staff, and customer policies, remain intact.

On a year-to-date basis, PC Jewellers' stock has surged by 11%, delivering an impressive 90% return to its investors over the past year. In terms of technical analysis, the relative strength index (RSI) of the stock is currently at 46.