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PC Jeweller Plans to Raise $111M in December IPO
Dec 4, 2012 5:18 AM
By Dilipp S Nag
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RAPAPORT... PC Jeweller Ltd. plans to raise up to $111 million (INR 6.09 billion) to fund its retail expansion across India through its initial public offering (IPO) scheduled for December 10, 2012.
The New Delhi-based jeweler is offering 45.1 million equity shares in the IPO and has fixed a price band of about $2.30 to $2.48 or INR 125 to INR 135 per equity share for the issue. The company, which currently operates 30 stores in north and central India under the PC Jeweller brand, is looking at divesting a 25.20 percent stake.
 “We are focusing on the domestic market as there is a huge potential for the growth,” said Balram Garg (second from left in photo), the managing director of PC Jeweller. “We plan to open 7 stores this fiscal year and 13 stores next year.”
PC Jeweller aims to have 50 stores by fiscal 2014, including in southern and western parts of India where it does not have a presence yet. The jeweler’s products include gold, diamond and other jewelry, including silver articles, with a focus on bridal lines.
The company’s primary competitors include Tanishq, Tribhovandas Bhimji Zaveri, Gitanjali Gems and Joyalukkas. PC Jeweller also sells gold and diamond jewelry on a wholesale basis both locally and to international distributors in Dubai, Hong Kong and Singapore.
During fiscal 2012, the company posted a net profit of $42 million (INR 2.30 billion) on revenue of $555.5 million (INR 30.42 billion), according to its prospectus. Exports contributed 33 percent of revenue during the year.
PC Jeweller currently has two jewelry manufacturing facilities in Uttarakhand that cater to the local market and two at the Noida SEZ in Uttar Pradesh for the overseas market. The company is also setting up an additional 34,000-square-foot jewelry manufacturing facility in Noida to further enhance its manufacturing capabilities. In addition, it is exploring the possibility of setting up international retail operations.
The company has reserved 358,500 shares for employees, while 44.8 million shares are being offered to the public. The minimum bid lot is 90 equity shares and multiples of the same share total. PC Jeweller is offering a discount of INR 5 per share on the issue price to retail investors and to its employees. The issue will close on December 12, 2012.
The book-running lead managers are SBI Capital Markets and Kotak Mahindra Capital Company and the co-book-running lead manager is IDBI Capital Market Services. The company has proposed to list its equity shares on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
*Note: All data was published in rupee. Any references to U.S. dollar amounts were made according to exchange-rate conversions by Rapaport News.
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Tags:
Balram Garg, diamonds, Dilipp S Nag, gold, India, ipo, jewellery, Jewelry, PC Jeweller, PCJ, retail
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