Upcoming IPO: Priority Jewels, a Mumbai-based fine jewellery manufacturer, filed draft papers with the stock market regulator Securities and Exchange Board of India (SEBI), seeking approval to launch its initial public offer (IPO).
While Priority Jewels did not disclose the IPO size, the draft red herring prospectus (DRHP) showed the issue will entirely be a fresh issue of up to 54,00,000 equity shares of ₹10 each.
The company plans to use the proceeds from the fresh issue to the extent of ₹75 crore for repayment/pre-payment, in full or part, of certain borrowings availed by the company, and the remaining for general corporate purposes.
In the Priority Jewels IPO, not more than 50% of the net offer is allocated to qualified institutional buyers (QIBs), and not less than 15% and 35% of the net offer is assigned to non-institutional investors (NIIs) and retail individual bidders, respectively.
The equity shares of Priority Jewels are proposed to be listed on the BSE and the National Stock Exchange of India (NSE).
About Priority Jewels
Priority Jewels designs, manufactures and sells a wide range of light-weight, affordable diamond-studded gold and platinum fine jewellery. The company was incorporated in the year 2007, and has over 15 years of experience in the jewellery manufacturing industry.
Its product portfolio primarily consists of daily wear jewellery, including rings, earrings, pendants, neckwear, bracelets and occasion couture jewellery. Our product portfolio is centred on light-weight, affordable, daily wear pieces that are crafted for a wide audience across the country, the company’s DRHP said.
Priority Jewels also supplies its products to leading jewellery chains, including CaratLane Trading Private, Kalyan Jewellers India, Reliance Retail, Malabar Gold & Diamonds FZCO, Tribhovandas Bhimji Zaveri and Senco Gold.
It has two jewellery manufacturing facilities in India that cater to its domestic and export sales.
As of December 31, 2024, it has over 200 customers, predominantly in India, including 159 independent jewellers and 35 jewellery chains.
Priority’s profit after tax (PAT) grew from ₹5.37 crore in Fiscal 2022 to ₹7.15 crore in Fiscal 2024, achieving a CAGR of 15.35%. Similarly, its quantity processed and sold increased from 1,30,031 in Fiscal 2022 to 1,72,108 in Fiscal 2024, achieving a CAGR of 15.05%.
Mefcom Capital Markets Limited is the sole book-running lead manager and MUFG Intime India Private Limited is the registrar to the issue. The equity shares are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.