Priority Jewels Prepares for Public Debut with SEBI Filing

Image Source: ET CFO

Mumbai-based fine jewellery manufacturer Priority Jewels has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), marking a significant step toward its initial public offering. The company aims to raise funds through a fresh issue of equity shares, reinforcing its financial position and expansion plans.

Market Entry and Financial Strategy:
- The IPO will consist entirely of a fresh issue of up to 54 lakh equity shares, with no offer-for-sale component.
- Proceeds from the offering will be allocated toward debt repayment, with approximately 75 crore rupees earmarked for this purpose.
- The remaining funds will be utilized for general corporate activities, supporting the company’s long-term growth strategy.

Industry Presence and Expansion:
- Priority Jewels specializes in lightweight, affordable diamond-studded gold and platinum jewellery, catering to both domestic and international markets.
- The company supplies its products to leading jewellery chains, including CaratLane, Kalyan Jewellers India, Reliance Retail, Malabar Gold & Diamonds, Tribhovandas Bhimji Zaveri, and Senco Gold.
- With two manufacturing facilities in India, the company has established a strong distribution network, serving over 200 customers, including independent jewellers and major retail chains.

Financial Performance and Growth Outlook:
- The company’s profit after tax grew from 5.37 crore rupees in fiscal 2022 to 7.15 crore rupees in fiscal 2024, reflecting a compound annual growth rate of 15.35 percent.
- Its processed and sold quantity increased from 1,30,031 units in fiscal 2022 to 1,72,108 units in fiscal 2024, demonstrating steady market demand.
- The equity shares of Priority Jewels are proposed to be listed on the National Stock Exchange of India and BSE, further strengthening its market presence.

With its IPO filing, Priority Jewels is positioning itself for expansion and financial stability, leveraging its established industry reputation and growing consumer base.

Source: The Hindu BusinessLine, NDTV Profit, Economic Times, SEBI