Priority Jewels Sets IPO Price Band At ₹190-200, Issue Opens On Aug 28

Priority Jewels has fixed the price band for its upcoming initial public offering (IPO) at ₹190-200 per share, with a face value of ₹10. The ₹91.50-crore IPO will open for subscription on August 28 and remain open until September 1.

The book-built issue comprises a fresh issue of 45.75 lakh shares aggregating to ₹91.50 crore.

The company intends to utilise ₹75 crore from the fresh issue proceeds towards the full or partial repayment or pre-payment of certain borrowings. The remaining funds will be used for general corporate purposes.

IPO Details And Share Allocation

Under the Priority Jewels IPO, up to 50% of the net offer is reserved for qualified institutional buyers (QIBs), while at least 15% will be allocated to non-institutional investors (NIIs) and at least 35% to retail individual bidders.

The equity shares are proposed to be listed on both the BSE and the National Stock Exchange of India (NSE).

Mefcom Capital Markets is the sole book-running lead manager for the issue, while MUFG Intime India has been appointed as the registrar.

About Priority Jewels

Priority Jewels designs, manufactures and sells lightweight and affordable diamond-studded gold and platinum jewellery.

Established in 2007, the company has more than 15 years of experience in the jewellery manufacturing industry. Its portfolio includes daily-wear jewellery such as rings, earrings, pendants, neckwear and bracelets, along with occasion and couture jewellery.

According to the company's DRHP, its products focus on lightweight and affordable everyday jewellery aimed at a broad customer base across India.

Priority Jewels supplies its products to several prominent jewellery chains, including CaratLane Trading, Kalyan Jewellers India, Reliance Retail, Malabar Gold & Diamonds, Tribhovandas Bhimji Zaveri and Senco Gold.

The company operates two jewellery manufacturing facilities in India, serving both domestic and export markets.

Profit, Production Growth

Priority Jewels' profit after tax (PAT) increased from ₹5.37 crore in FY22 to ₹7.15 crore in FY24, representing a CAGR of 15.35%.

During the same period, the quantity of jewellery processed and sold rose from 1,30,031 units to 1,72,108 units, translating into a CAGR of 15.05%.

The company plans to use the majority of the IPO proceeds to reduce its borrowing obligations, while the proposed listing on the BSE and NSE will provide a public market for its equity shares.