Ahead of the listing, the company’s shares traded with a GMP of Rs 60 in the unlisted market.
The IPO was completely a fresh equity issue of 10 lakh shares and through the issue, it raised around Rs 5.5 crore. The issue received strong response from investors with an overall subscription of over 600 times at close.
Net proceeds from the public offer will be used for funding working capital requirements as well as general corporate purposes.
The company is engaged in the business of supplying jewelery to retail jewellery, mainly gold and diamond jewellery. The jewelery is manufactured on a job basis. It deals in two types of jewelery — 22 Karat Gold jewelery and 18 Karat diamond.
Also Read: AVP Infracon IPO: Check issue size, price band, GMP and other detailsIt offers a diverse range of products and is dedicated to designing, manufacturing, and selling high-quality jewelery that includes necklaces, chains, rings and earrings.The company sources finished jewelery from third-party artisans located across India. Additionally, it also supplies raw materials ie gold bullion, bars to artisans for making of the products on a job-work basis in Ahmedabad, Mumbai, Rajkot, and Surat.
The Indian gems and jewelry market consists of gold, silver, and diamond jewelry, along with other precious gems and pearls. India is the world’s second-largest consumer of gold, with 70% of the consumption being in the form of gold jewelry.
Further, the Indian jewelry market can be divided into the categories of fine jewelry and costume jewelry, with 95% of the market consisting of fine jewelry.
For the period ended November 2023, the company clocked revenues of Rs 5.55 crore and net profit of Rs 13 lakh.
GYR Capital Advisors acted as the lead manager to the issue and Kfin Technologies was the registrar.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)