Priority Jewels Set to Launch IPO: What You Need to Know
In an exciting development for investors, Priority Jewels, a prominent fine jewellery manufacturer based in Mumbai, has submitted its draft papers to the Securities and Exchange Board of India (SEBI), indicating its intention to initiate an initial public offering (IPO). Although the exact size of the IPO remains undisclosed, details from the draft red herring prospectus (DRHP) suggest that the company plans to issue up to 54,00,000 equity shares valued at ₹10 each.
Purpose of the IPO Proceeds
Priority Jewels aims to utilize the funds raised from this fresh issue for several strategic purposes:
- Repayment of Borrowings: Up to ₹75 crore will be allocated for repaying or pre-paying existing loans.
- General Corporate Needs: Remaining funds will support various corporate initiatives.
IPO Allocation Breakdown
The structure of the IPO is designed to attract a diverse range of investors:
- Qualified Institutional Buyers (QIBs): Up to 50% of the net offer.
- Non-Institutional Investors (NIIs): At least 15% of the net offer.
- Retail Individual Bidders: A minimum allocation of 35%.
Investors can look forward to the shares being listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE).
About Priority Jewels
Founded in 2007, Priority Jewels has established a reputation for crafting a wide array of lightweight, affordable diamond-studded jewellery. With over 15 years of industry experience, the company specializes in daily wear items, including:
- Rings
- Earrings
- Pendants
- Neckwear
- Bracelets
- Occasion-specific couture jewellery
The DRHP emphasizes that their product offerings are designed to appeal to a broad audience across India.
Strong Customer Base and Growth
Priority Jewels has built a robust customer network, supplying to top jewellery chains such as:
- CaratLane Trading Private
- Kalyan Jewellers India
- Reliance Retail
- Malabar Gold & Diamonds FZCO
- Tribhovandas Bhimji Zaveri
- Senco Gold
The company operates two manufacturing facilities in India, catering to both domestic and export demands. As of December 31, 2024, Priority Jewels boasts over 200 customers, including 159 independent jewellers and 35 jewellery chains.
Financial Performance Highlights
The company’s financial trajectory shows promising growth:
- Profit After Tax (PAT): Increased from ₹5.37 crore in Fiscal 2022 to ₹7.15 crore in Fiscal 2024, reflecting a CAGR of 15.35%.
- Quantity Processed and Sold: Rose from 1,30,031 units in Fiscal 2022 to 1,72,108 units in Fiscal 2024, achieving a CAGR of 15.05%.
IPO Management Team
Mefcom Capital Markets Limited is the sole book-running lead manager for this IPO, while MUFG Intime India Private Limited has been appointed as the registrar for the issue.
With an appealing product line and a solid track record in the jewellery market, Priority Jewels’ IPO is certainly one to watch for potential investors. Keep an eye on this offering if you’re interested in adding a touch of elegance to your investment portfolio!
