Priority Jewels Ltd. IPO coming soon, Check all IPO Details

Priority Jewels Ltd., a jewellery manufacturing company based in Mumbai, has officially filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). This marks a significant step toward its Initial Public Offering (IPO) in which the company aims to raise capital from the public markets to support its business growth and financial goals.

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Company Overview

Founded in 2007, Priority Jewels has over 15 years of expertise in the jewellery manufacturing industry. The company is involved in every aspect of jewellery production, from initial design concepts to manufacturing. It is particularly known for its range of lightweight, affordable daily wear jewellery, which is popular among a wide customer base. Additionally, Priority Jewels manufactures lab-grown diamond jewellery that is created based on specific customer orders.

IPO Structure and Fund Usage

Priority Jewels plans to raise capital through a fresh issue of up to 54 lakh equity shares, each with a face value of ₹10. Unlike some IPOs that may involve selling existing shares, this IPO will be entirely a fresh issue with no Offer for Sale (OFS) component. The funds raised from the IPO will primarily be used for two purposes:

1. Repayment of Borrowings: ₹75 crores will be allocated to pay off certain borrowings, helping reduce the company’s debt.
2. General Corporate Purposes: The remaining funds will be used to support the company’s growth and operational needs.

Additionally, Priority Jewels is considering a pre-IPO placement, where shares could be sold to investors before the official IPO launch. If this placement occurs, the amount raised will be deducted from the fresh issue, and it will not exceed 20% of the total issue size.

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Manufacturing and Market Reach

Priority Jewels operates two manufacturing facilities in India, which cater to both domestic and international markets. The company uses a business-to-business (B2B) model, selling jewellery directly to independent jewellers and jewellery chains across India and abroad. As of December 31, 2024, the company has built a customer base of over 200 clients, including well-known names like CaratLane, Kalyan Jewellers, Reliance Retail, and Malabar Gold & Diamonds. It has also expanded its reach to 13 countries, including the USA, UAE, Hong Kong, and Norway.

Financial Performance and Growth

Priority Jewels has shown solid financial growth in recent years. The company’s profit after tax (PAT) grew from ₹5.37 crore in FY2022 to ₹7.15 crore in FY2024, reflecting a Compound Annual Growth Rate (CAGR) of 15.35%. The volume of jewellery sold also increased, from 1,30,031 pieces in FY2022 to 1,72,108 pieces in FY2024, with a CAGR of 15.05%.

IPO Details

Priority Jewels has appointed Mefcom Capital Markets Ltd. as the book-running lead manager for the IPO. MUFG Intime India Pvt. Ltd. will serve as the registrar for the issue. The company plans to list its shares on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), with the IPO subject to SEBI’s approval.

This IPO is a crucial step for Priority Jewels as it looks to expand its operations and tap into the potential of the public market to fund its future growth.

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