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Jewellery retail IPOs shine in 2023

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Shiv Joshi
Shiv Joshi
An editor with over 20 years of experience across industry verticals and content formats from tabloids to magazines, he is the Deputy Group Managing Editor at Images Group.

Of the 11 odd public issues by companies operating in the retail ecosystem this year, 4 are by jewellery retailers

Jewellery retailers reported a sales growth of 13% in October and November 2023 as compared to the same period last year as per the latest Retailers Association of India survey. The sector was the highest performing of all surveyed.

Jewellery consumption is estimated by ratings agency ICRA to have risen by over 15% YoY in H1 FY2024, aided by stable demand during Akshaya Tritiya and higher gold prices.

The year has been good for jewellery retail also in terms of its performance on the bourses with Kalyan Jewellers India share prices gaining 465% from July 2022 till November 2023. Thangamayil Jewellery stock appreciated 170% in the last year.

Encouraged by the stock market success of companies in the business, this year also saw the launch of four initial public offers (IPOs) by jewellery retailers. IndiaRetailing lists them below in chronological order of their launch.

Senco Gold Ltd.
Listing Date: 14 Jul 2023
Issue size: Rs 405 crore
Subscription Times: 77.25
Issue Price: Rs 317.00

Headquartered in Kolkata, Senco Gold Ltd. is a jewellery store chain with a rich legacy. The brand which boasts celebrities cricketer Sourav Ganguly, and actors Vidya Balan and Kiara Advani as its brand ambassadors, has over 150 showrooms across India, a mix of company and franchise-operated stores. Despite a pan-India presence, almost 70% of its revenues come from West Bengal.

For the quarter ended September 2023, it reported a PAT Rs 11.9 crore, registering a 36% year-on-year (YoY) growth.

Khazanchi Jewellers Ltd.
Listed on: 7 August 2023 (only on BSE)
Issue size: Rs 97 crore
Subscription Times: 1.26
Issue price: Rs 140.00

Founded by Tarachand Mehta, Chennai-based Khazanchi Jewellers Ltd. was formally incorporated in 1995. It trades in gold and silver bullion and sells gold jewellery and silver ornaments in the wholesale and retail segments. The company operates two retail stores in Chennai.

For the quarter ended September 2023, the company reported a PAT of Rs 15.72 crore.

Motisons Jewellers
Listing Date: 26 December
Issue size: Rs 151.09 crore
Subscription Times: 159.61
Issue Price: Rs 109 NSE, Rs 103.90 BSE

Started in 1998 and led by managing directors Sandeep Chhabra & Sanjay Chhabra, Motisons Group has four showrooms in Jaipur. The company retails finished jewellery made of gold, diamond, kundan sourced from third-party vendors across the country.

For the quarter ended June 2023, the company reported a revenue of Rs 86.7 crore and a profit of Rs 5.47 crore. In FY23, its revenue from operations rose 16% year-on-year to Rs 366 crore, while profit increased 51% to Rs 22.19 crore as per media reports.

RBZ Jewellers
Listing Date: 27 December
Issue size: Rs 100 crore
Subscription Times: 16.86
Issue Price: Rs 100

Ahmedabad-based B2B and retail jewellery firm RBZ jewellers specialises in making antique gold jewellery. The jewellers are known for their Kundan, meena and jadau work.

According to a Care Edge Report cited by the Economic Times, RBZ Jewellers does business with national, regional, and local family jewellers across 19 states and 72 cities in India.

The company’s revenue from operations rose 14% to Rs 289.6 crore in FY 2023 from Rs 252.5 crore in FY 2022. Its profit after tax surged 55% to Rs 22.43 crore in FY 2023 from Rs 14.48 crore in the previous financial year as per PTI.

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