Priority Jewels make a decent stock market debut; shares list at 15% premium on NSE

Shares of Priority Jewels made a decent stock market debut on Friday, September 05 as the jewellery player was listed at Rs 230 on NSE, a premium of 15 per cent over the issue price of Rs 200. Similarly, the stock settled with a mild premium of 12.60 per cent over the given issue price at Rs 225.20 at BSE Ltd in its maiden trading session.

As of the listing price, investors of Priority Jewels made a profit of 2,250 on each lot allotted to them. Listing of Priority Jewels has been in-line with the expectations. Ahead of its debut, shares of Priority Jewels was commanding a grey market premium (GMP) of Rs 28-30 apeice, suggesting a 14-15 per cent listing gains for the investors.

The IPO of Priority Jewels was sold in the price band of Rs 190-200 apiece between August 28 and September 01. The company sold the issue with a lot size or 75 equity shares and its multiples thereafter. It raised a total of Rs 92 crore via IPO, with issue being overall subscription of 100.45 times, fetching more than 20.80 lakh applications and bids worth over Rs 6,430 crore.

Incorporated in 2007, Mumbai-based Priority Jewels designs, manufactures, and sells diamond-studded gold and platinum fine jewellery. It offers a variety of daily wear jewellery products, like rings, earrings, pendants, neckware, bracelets, and occasion couture jewellery.

On an individual basis, the portion reserved for non-institutional investors (NIIs) saw subscription of 166.49 times, while the portion for retail investors was subscribed nearly 106.75 times. The allocation for qualified institutional bidders (QIBs) was subscribed 39.87 times during the three-day subscription period.

Despite the strong subscription, the grey market premium (GMP) of Priority Jewels has taken a major hit. Last heard, Priority Jewels IPO was commanding a GMP of Rs 25-30 apiece, suggesting an upside potential of around 13-15 per cent for the investors. Its premium stood around Rs 45 range during the bidding period, signaling 22-23 per cent gains.

Brokerage firms had a mixed view on this IPO. Mefcom Capital Markets served as the sole book running lead manager and MUFG Intime India was the registrar of the issue.