Priority Jewels To Launch ₹91.50 Crore IPO On 28 August

Priority Jewels will open its initial public offering on 28 August with a price band of ₹190-200 per share. The issue will remain open until 1 September, while anchor investor bidding is scheduled for 27 August.

At the upper end of the price band, the IPO will raise ₹91.50 crore and give the company an estimated post-issue market capitalisation of around ₹360 crore.

IPO Proceeds To Fund Debt Repayment

The IPO comprises a fresh issue of up to 45.75 lakh equity shares. Priority Jewels plans to use ₹75 crore from the proceeds towards the full or partial repayment or pre-payment of certain borrowings. The remaining funds will be deployed for general corporate purposes.

Unlike an offer for sale, where existing shareholders sell their shares, a fresh issue involves the company issuing new shares and receiving the proceeds.

Investor Allocation And Listing

Up to 50% of the net offer has been reserved for qualified institutional buyers, while at least 15% has been earmarked for non-institutional investors and at least 35% for retail individual bidders.

The equity shares are proposed to be listed on both the BSE and NSE on 4 September. Mefcom Capital Markets is the sole book-running lead manager for the IPO, while MUFG Intime India is the registrar.

Priority Jewels Business

Established in 2007, Priority Jewels designs, manufactures and sells lightweight diamond-studded gold and platinum jewellery. Its product range includes daily-wear jewellery such as rings, earrings, pendants, neckwear and bracelets, along with occasion and couture jewellery.

The company supplies jewellery to chains including CaratLane Trading, Kalyan Jewellers India, Reliance Retail, Malabar Gold & Diamonds, Tribhovandas Bhimji Zaveri and Senco Gold. It operates two jewellery manufacturing facilities in India, catering to domestic and export markets.

Profit And Production Growth

Priority Jewels reported a profit after tax of ₹7.15 crore in FY24, higher than ₹5.37 crore in FY22, representing a compound annual growth rate of 15.35%. The volume of jewellery processed and sold during the same period grew to 1,72,108 units from 1,30,031 units at a CAGR of 15.05%.

The company plans to use the bulk of its IPO proceeds to pay down its borrowings and the planned listing will give it a public market for its equity shares.

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