Priority Jewels IPO

About Priority Jewels IPO

Priority Jewels Limited IPO is an IPO of up to 54,00,000 equity shares. It consists of a fresh issue of up to 54,00,000 equity shares. The shares will be allotted on TBA. The credit of shares to the demat account will take place on TBA and the initiation of refunds will take place on TBA.

Objective of Priority Jewels IPO

• Repayment or pre-payment, in full or in part, of certain borrowings availed by the company.

• General corporate purposes.

Industry Outlook

The Indian daily-wear gems and jewellery market was valued at ₹74,500 crore in CY23, reached ₹84,800 crore in CY24, and is projected to reach ₹1,36,600 crore by CY29P, representing a CAGR of 10% from CY24 to CY29P. The demand for diamond-studded gold jewellery is driven by factors such as higher disposable incomes, a growing preference for branded products, and the influence of global fashion trends. (Source: CARE Report)

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. Further, according to a report by the World Gold Council, recent interactions between Metals Focus and retailers have highlighted a significant increase in demand for lightweight jewellery, particularly in the daily-wear jewellery segment, including fashionable and fast-moving designs. The Indian lightweight jewellery market was valued at ₹2,42,600 crore in CY24 and is projected to reach ₹4,55,800 crore in CY29P, registering a CAGR of 13.4% from CY24 to CY29P. (Source: CARE Report)

Company Information

Priority Jewels Limited are engaged in designing, manufacturing and the sale of a wide range of lightweight, affordable diamond-studded gold and platinum fine jewellery. They sell directly to independent jewellers and jewellery chains in India as well as select international markets. Their ability to blend craftsmanship with innovation has enabled them to establish long-standing relationships with major Indian retail jewellery players, reinforcing their position as a trusted supplier to their customers. They supply their 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. Their portfolio primarily comprises daily-wear jewellery, including rings, earrings, pendants, neckwear, bracelets, and occasion couture jewellery, all of which are developed using contemporary design approaches and modern manufacturing techniques. They also manufacture lab-grown diamond jewellery based on specific orders received from their customers.

Risks of Priority Jewels IPO

• Dependence on raw material procurement and absence of long-term contracts with their suppliers : They rely on the timely procurement of raw materials, including gold, diamonds, platinum, and precious or semi-precious stones, to manufacture their jewellery products. Further, they do not have long-term agreements for the supply of their raw materials. Any disruption in the timely procurement of these materials from their existing vendors, or a failure to source suitable alternatives on acceptable terms, could adversely impact their production schedules, increase their costs, and materially affect their business and financial condition.

• Risks related to reliance on third-party suppliers for raw materials and other components. : They purchased 48.17% of their total raw materials and other components from their top 10 suppliers for the nine months that ended on 31 December 2024, of which their top 3 suppliers contributed 27.66%, and their top 5 suppliers contributed 35.96% of their total purchases of raw materials and other components. A continued dependence on a concentrated supplier base may adversely affect their ability to manage their supply chain efficiently and could have a material adverse effect on their business, results of operations, cash flows, and financial condition.

• Export operations risks : Their significant export operations are subject to international market risks that could materially affect their business, results of operations, and financial condition. Additionally, compliance with export norms and customs-related uncertainties could adversely affect their financial condition and results of operations.

IPO Registrar and Book Running Lead Managers

Book running lead managers: Mefcom Capital Markets Limited

Registrar for the IPO : MUFG Intime India Private Limited

Business Model

The company earns their revenue through the following sources:

• Manufacturing and sale of a wide range of lightweight, affordable diamond-studded gold and platinum fine jewellery.

• Manufacturing lab-grown diamond jewellery based on specific orders received from their customers.

Company Growth Trajectory

During the nine months that ended on 31 December 2024, revenue from operations totalled ₹295.42 crore. Other income for the nine months that ended on 31 December 2024 was ₹0.15 crore. Their 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, the quantity processed and sold by them increased from 1,30,031 in fiscal 2022 to 1,72,108 in fiscal 2024, achieving a CAGR of 15.05%.

Company Market Position

They supply their 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. As of 31 December 2024, they had over 200 customers, predominantly in India, including 159 independent jewellers and 35 jewellery chains. Several of the independent jewellers and jewellery chains they serve are long-standing customers. Over the years, they have expanded their market presence across 21 states and 3 union territories in India and have exported products to 13 countries globally, including the United States of America, UAE, Hong Kong and Norway.

How To Check Allotment Status of Priority Jewels IPO?

You can check the allotment status of shares either on the website of the Securities and Exchange Board of India (SEBI) or on the website of the registrar MUFG Intime India Private Limited. To check the status on the SEBI website:

• Visit the SEBI website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Priority Jewels Limited
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the MUFG Intime India Private Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Priority Jewels Limited from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status

How To Apply for Priority Jewels IPO?

• Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.