Priority Jewels files DRHP with Sebi to launch IPO; check details

Priority Jewels, a Mumbai-based jewellery manufacturer and retailer, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO). The offering comprises a fresh issue of up to 54,00,000 equity shares at a face value of ₹10 each. Mefcom Capital Markets Limited has been appointed as the sole book-running lead manager, with MUFG Intime India Private Limited serving as the registrar. The company is considering a pre-IPO placement that could potentially reduce the size of the issue by up to 20%.

The primary objective of the IPO is to raise funds for the repayment or pre-payment of certain borrowings, with ₹75 crores specifically allocated for this purpose. The remainder will be used for general corporate purposes. Priority Jewels, established in 2007, specialises in lightweight, affordable diamond-studded gold and platinum jewellery, including lab-grown diamond pieces. The IPO will be conducted through the book-building process, with an allocation of not more than 50% for qualified institutional buyers, and at least 15% and 35% for non-institutional and retail investors, respectively.

With over 15 years in the jewellery industry, Priority Jewels has a vast product portfolio, ranging from daily wear like rings and earrings to occasion-specific couture pieces. The company supplies to prominent jewellery chains such as CaratLane, Kalyan Jewellers, Reliance Retail, Malabar Gold & Diamonds, Tribhovandas Bhimji Zaveri, and Senco Gold. It operates two manufacturing facilities in India, catering to both domestic and international markets.

As of December 2024, Priority Jewels had a customer base of over 200, primarily in India, with a significant international presence in 13 countries, including the USA, UAE, Hong Kong, and Norway. The company reported a profit after tax (PAT) increase from ₹5.37 crore in Fiscal 2022 to ₹7.15 crore in Fiscal 2024, marking a compound annual growth rate (CAGR) of 15.35%. The quantity of processed and sold jewellery rose 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, valued at ₹2.43 trillion in CY24, is projected to grow at a CAGR of 8% from CY24 to CY29, reaching ₹4.56 trillion. This growth is driven by increased disposable incomes and a shift towards lightweight, contemporary designs among younger consumers. The sector is poised for expansion, as highlighted in a CARE report, with Priority Jewels well-positioned to leverage these trends.

Upon IPO completion, Priority Jewels' equity shares are expected to be listed on both the National Stock Exchange of India Limited and BSE Limited, enhancing its market presence. Investors are currently awaiting further announcements regarding the IPO timeline and subscription details, which are anticipated to offer further insights into the company’s strategic financial planning.