New Delhi: Advit Jewels Ltd on Friday announced plans to expand its business-to-consumer (B2C) presence by opening 30 retail showrooms under the ‘Rambhajo’ brand over the next three years, funded partly through proceeds from its upcoming initial public offering (IPO).
The Jaipur-based company’s maiden IPO opens for subscription on June 23 and closes on June 25. The company has fixed a price band of Rs 130-138 per share for the public offer. The IPO comprises an entirely fresh issue of 1.19 crore shares, aggregating to Rs 165.15 crore.
“Without disturbing our B2B presence, we plan to expand our consumer-facing business with 30 retail showrooms across India in the next three years,” Chairman and Managing Director Nitin Gilara said at a press conference.
Read More: Gold imports fall to 25-30 tonnes/month from 70-100 tonnes after duty hike: Govt source
The company’s flagship retail outlet in Jaipur is expected to be operational by October-November, with subsequent stores to be rolled out on a franchise model.
Gilara said the company would initially focus on northern India before expanding to the south, with locations yet to be finalised.
The retail push will target millennials and Gen Z consumers through light jewellery offerings.
Gilara clarified that designs manufactured for B2B clients would not be sold at retail stores and existing manufacturing capacity was sufficient to support the planned expansion.
Of the total IPO proceeds, Rs 65 crore will be deployed towards debt repayment and another Rs 65 crore towards incremental working capital requirements. The remainder will be utilised to fund the rollout of the retail showrooms.
Advit Jewels manufactures handcrafted traditional and contemporary fine jewellery, specialising in Kundan, Polki, diamond and studded pieces in 14-carat and 18-carat gold.
The company has also been exploring international markets, Gilara added.
The company raised funds in a pre-IPO round from institutional investors, including Rajasthan Venture Capital. Post-listing, promoters will retain approximately 70 per cent stake.
For the nine months ended December 31, Advit Jewels reported a revenue from operations of Rs 123.79 crore and a net profit of Rs 25.44 crore.
