Khazanchi Jewellers SME IPO hits Street: All you need to know

Khazanchi Jewellers on Monday launched an initial public offer (IPO) on stock exchange BSE's SME platform. The SME IPO of Khazanchi Jewellers — a Chennai-based jewellery maker Khazanchi Jewellers — comprises fresh issuance of equity shares worth up to Rs 97 crore.

The Khazanchi Jewellers SME IPO, which opened for subscription on July 24, will close on July 28.   

Here's all you need to know about the Khazanchi Jewellers IPO:

Important dates

The Khazanchi Jewellers stock will likely be listed on the BSE SME platform on August 7. The basis of allotment will likely be finalised on August 2 and the credit of shares may take place on August 4. 

IPO issue price

Under the IPO, Khazanchi Jewellers shares will be available at Rs 140 apiece in multiples of 1,000, translating to Rs 1,40,000 per lot. 

Fund utilisation

The company aims to utilise the proceeds from the issue towards the financing and capex of its new showroom at Chennai, augmenting the working capital requirements of the existing operations, and for general corporate purposes, according to the red herring prospectus (RHP). 

What does Khazanchi Jewellers do?

Khazanchi Jewellers is a prominent player in the Indian jewellery industry, with a strong presence in both wholesale and retail sectors. It specialises in the production and sale of a wide range of jewellery products, including gold jewellery, diamond jewellery, precious stones, and other fancy jewellery and bullion in the form of coins and bars, according to the red herring prospectus.

Khazanchi Jewellers' promoters are experienced entrepreneurs with over 25 years of expertise in the field. The company offers a diverse range of jewellery products, and is dedicated to designing, manufacturing and selling high-quality jewellery, including necklaces, chains, rings, earrings, bangles, bracelets, pendants, nose pins, mangalsutras and kadas, according to the prospectus.

Financials

For the year ended March 31, 2023, Khazanchi Jewellers' profit after tax stood at Rs 7.6 crore as against Rs 3.3 crore for the previous year, according to the RHP. Its revenue came in at Rs 480.7 crore for the financial year 2022-23 as against Rs 256.9 crore for the previous year.  

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