A slew of jewellery retail firms is set to tap the primary markets, with at least 10 companies lining up to raise money through initial public offerings (IPOs) over the next 3-6 months, according to people familiar with the matter. Bankers and industry officials said constraints on raising money through lenders, rich valuations and a thriving IPO market are prompting these companies to explore the public market route.
Some firms have already filed their IPO documents with Securities and Exchange Board of India (Sebi). These include PNGS Reva Diamond Jewellery, backed by PN Gadgil & Sons, Chennai-based Lalithaa Jewellery Mart and Priority Jewels, a Mumbai-based jewellery manufacturer.
Among the companies preparing to file their draft red herring prospectus (DRHP) are RiddiSiddhi Bullions Ltd (RSBL), Nagpur-based Rokde Jewellers and Shankesh Jewellers, Swarnshilp Chains & Jewellers, Royal Chains, and Waman Hari Pethe, according to investment bankers in the know. Emails and calls to these firms remained unanswered.
“Jewellery companies are among the few consumer sub-sectors that are doing well in an otherwise sluggish consumer market,” said Bhavesh Shah, managing director, head – Investment Banking, Equirus Capital.
