R ARIVANANTHAM
CHENNAI, JULY 21
Chennai-based Khazanchi Jewellers Ltd’s Initial Public Offer (IPO) will open for subscription on Monday, 24 July, and close on Friday, 28 July. The company has fixed the price band at Rs 140 per equity share for the proposed initial public offer.
The company is offering 69,10,000 equity shares of Rs 10 each at a fixed price of Rs140 per share (including a premium of Rs 130 per share), to raise Rs 96.74 cr.
- IPO opens on Monday, July 24 and closes on Friday, July 28, 2023
- The market lot for application and trading will be of 1000 shares
- The shares will be listed on BSE SME
- The company will utilize Rs 8.62 cr for new showrooms, Rs 20.00 cr for inventories of the new showroom, Rs 55.00 cr for working capital and Rs 12.00 cr. for general corporate purposes
- The company reported a total income of Rs 481.82 crore in the financial year ended March 31, 2023, with a net profit of Rs 7.57 crore
Announcing the IPO at the media conference, Chairman Tarachand Metha said, “The company would utilize the fund raised from the public for expanding its current showroom sprawling over 10,000 square feet with good ambience and parking facilities at NSC Bose Road in Chennai. The funds raised from IPO will also utilized for maintaining necessary inventory to meet the requirements of retail and corporate customers.”
Replying to a query, he said, “Our customer retention rate of Khazanchi Jewellers is 90 percent, as many of them are buying jewellery for special occasions in their families for generations, because of transparent deals and quality offerings,”.
Khazanchi has reserved 3,46,000 equity shares for the market maker. From the rest, it has allocated 50% for HNIs and 50% for Retail investors. From the net proceeds of the IPO money, the company will utilize Rs. 8.62 cr for new showrooms, Rs 20.00 cr. for inventories of the new showroom, Rs 55.00 cr. for working capital and Rs. 12.00 cr. for general corporate purposes.
For the financial year ended on March 31, 2023, it has reported a total income of Rs. 481.82 cr. with a net profit of Rs 7.57 cr. For financial year ended on March 31, 2022, it posted a total income of Rs 258 cr with a net profit of Rs 3.27 cr. For financial year ended on March 31, 2021, it posted a total income of Rs 382.43 cr with a net profit of Rs 2.76 cr.
The company has received approval from BSE Ltd. (the designated stock exchange) for its prospectus. The IPO is opening on July 24, 2023 and will close on July 28, 2023. The market lot for application and trading will be of 1,000 shares. The shares will be listed on BSE SME.
Khazanchi Jewellers was incorporated in March 1996 as a private limited company and got converted in to public limited company in April 2023.
The company is a prominent player in the Indian jewellery industry, with a strong presence in both wholesale and retail sectors. They specialize 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. Their business have a rich history spanning over three decades in the Indian jewellery industry. Their promoters are experienced entrepreneurs with over 25 years of expertise in the field.
They offer a diverse range of jewellery products and are dedicated to designing, manufacturing, and selling high-quality jewellery that includes necklaces, chains, rings, earrings, bangles, bracelets, pendants, nose pins, mangalsutras, and kadas. Their focus is on creating exquisite wedding jewellery and other pieces suitable for festive occasions.
Promoters Tarachand Mehta, Goutham, Tarachand Mehta and Sons, Goutham HUF were also present at the media conference.
