Makes products for CaratLane Trading Private Limited, Kalyan Jewellers India Limited, Reliance Retail Limited, Malabar Gold & Diamonds FZCO, Tribhovandas Bhimji Zaveri Limited and Senco Gold Limited
MUMBAI, May 2 (The CONNECT)- Affordable diamond-studded gold and platinum fine jewellery maker Priority Jewels Limited has filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator Securities and Exchange Board of India (SEBI) for its initial public offering (IPO).
The IPO, with a face value of ₹10 per share, is completely a fresh issue of up to 54,00,000 equity shares.
The company, in consultation with the book-running lead manager, may consider issuing specified securities, as a pre-IPO placement. If such a pre-IPO placement is completed, the amount raised will be reduced from the issue, and it shall not exceed 20% of the size of the issue.
The proceeds from the fresh issue to the extent of Rs. 75 crores will be utilized for repayment/pre-payment, in full or part, of certain borrowings availed by the Company and general corporate purposes.
The Offer is being made through the book-building process, wherein not more than 50% of the net offer is allocated to qualified institutional buyers, and not less than 15% and 35% of the net offer is assigned to non-institutional and retail individual bidders respectively.
Priority Jewels was incorporated in the year 2007, and has over 15 years of experience in the jewellery manufacturing industry.
Priority Jewels handle from design conceptualisation, to manufacturing a diverse range of customised jewellery products, and has a product portfolio of light-weight, affordable, daily wear jewellery, such as rings, earrings, pendants, neckwear, bracelets and occasion couture jewellery. It also manufactures lab-grown diamond jewellery based on specific orders received from its customers.
It sells directly to independent jewellers and jewellery chains in India as well as select international markets. It supplies its products to leading jewellery chains, including CaratLane Trading Private Limited, Kalyan Jewellers India Limited, Reliance Retail Limited, Malabar Gold & Diamonds FZCO, Tribhovandas Bhimji Zaveri Limited and Senco Gold Limited.
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. Over the years, it has expanded its market presence across 21 states and 3 union territories in India and has exported products to 13 countries globally, including the United States of America, UAE, Hong Kong and Norway.
Priority’s revenue from operations for the fiscal year 2024 stood at Rs 410.51 crore and for the period ended December 31, 2024 it was Rs 295.42 crore. Its 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%.
The Indian gems and jewellery market is expected to grow at a CAGR of 8.0% between CY24 and CY29. In particular, domestic demand is fuelled by rising disposable incomes, urbanisation, and a growing preference for lightweight, modern designs, especially among younger consumers.
The Indian light-weighted jewellery market was valued at ₹2.43 trillion in CY24 and is projected to reach ₹4.56 trillion in CY29P registering a CAGR of 13.4% from CY24 to CY29P according to a CARE Report.
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.
