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PC Jeweller’s IPO Subscribed to Seven Times
Dec 13, 2012 5:32 AM
By Dilipp S Nag
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RAPAPORT... The initial public offering (IPO) of PC Jeweller Ltd. (PCJ) was subscribed to 6.85 times on Wednesday, the final day of the issue, according to data from the National Stock Exchange (NSE). The company planned to raise up to $111 million (INR 6.09 billion) during the offering of 45.1 million equity shares to fund its retail expansion across India.
The NSE data showed that the IPO received bids for around 263.3 million equity shares against the offer of 38.4 million shares, excluding the anchor investors' portion. The reserved category of qualified institutional investors and high-net-worth investors was subscribed 7.33 times and 18.12 times, respectively. The retail portion was subscribed to 1.68 times, while the employees segment was subscribed to 0.96 times.
The New Delhi-based jeweler had earlier raised about $16.7 million (INR 907 million) by allocating 6.7 million shares to 10 anchor investors at the top end of the price band of $2.30 to $2.48 (INR 125 to INR 135) per share.
The company currently operates 30 stores, mostly large format, in north and central India under the PC Jeweller brand. It is looking to open 20 showrooms by fiscal 2014 in southern and western parts of India where it does not have a presence yet.
PC Jeweller has five jewelry manufacturing facilities and its product consists of gold, diamond and other jewelry, including silver articles, with a focus on bridal lines. It also sells gold and diamond jewelry on a wholesale basis both locally and to international distributors in Dubai, Hong Kong and Singapore. The company’s primary competitors include Tanishq, Tribhovandas Bhimji Zaveri, Gitanjali Gems and Joyalukkas.
SBI Capital Markets and Kotak Mahindra Capital Company were the book-running lead managers for the issue, while IDBI Capital Market Services was the co-book-running lead manager. The company plans 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:
diamond, Dilipp S Nag, gold, India, ipo, jewellery, Jewelry, PC Jeweller, PCJ, retail
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