India's P N Gadgil Jewellers said it aimed to raise 11 billion rupees ($131 million) through an initial public offering next week as it seeks funds to expand retail store network and repay debt.
The IPO comprises a fresh issue of equity shares of up to 8.5 billion rupees and an offer for sale of shares worth 2.5 billion by promoters, the company said in a statement.
The company, which has 39 showrooms, including 1 in the United States, has set a price band of 456-480 rupees per share, which will run from Sept. 9 to Sept. 12. The company is valued at 65 billion rupees at the upper end of its price range.
The company plans to use 3.9 billion rupees from the proceeds to open 12 new stores in Maharashtra and 3 billion to repay the debt.
The company aims to increase its total store count to 100 stores within the next five years by opening new stores, particularly in central and northern India where it currently has no presence, said Saurabh Gadgil, chairman of the company.
In the fiscal year ended in March 2024, the jeweller's revenue stood at 61 billion rupees and net profit was 1.54 billion rupees, it said.
India traditionally had thousands of jewellers, but in the last two decades, the industry has been consolidating. The share of national and regional jewellery chains has increased to 35% from just 5% in 2000, the World Gold Council estimates.
India's jewellery market, estimated at $80 billion, has been rising rapidly because of an increase in disposable income.
Gold jewellery demand in the world's second biggest consumers is expected to rebound in the second half of 2024 after New Delhi sharply reduced import duty in July.
