D-Street To Shine With Jewellery IPOs, Four Already In Offing

NEW DELHI: The IPO market is getting a new glitter with jewellers from across the country lining up public issues to raise funds for expansion plans in the midst of consumers' growing appetite for luxury purchases.

Renaissance Jewellery and Shree Ganesh Jewellers are planning to raise close to Rs 400 crore from domestic market, while similar trend is being witnessed in US and Europe also.

Two other players -- PP Jewellers and Mehrasons Jewellers -- are also toying with IPO plans in the near future.

Five key players from this segment are already listed in India and the market is expecting more such issues as the surge in the consumers' disposable income is pushing up the demand for gems and jewellery products. Other than funds, the brand-value associated with a listed company is also attracting the jewellers.

"It is an encouraging trend that a lot many jewellery companies are realising the benefits of getting listed on Bombay Stock Exchange," Kejriwal Research and Information Services (KRIS) head Arun Kejariwal said.

"Raising money from equity market is easier, cheaper and faster compared to debt market. Besides, getting listed gives an 'identity' in a competitive market," he said.

"It not only brings transparency in business, but also boosts confidence to start new projects," Gems and Jewellery Export Promotion Council Chairman Sanjay Kotari said.

Mumbai-based Renaissance Jewellery, a leading exporter of studded gold and platinum jewellery is raising about Rs 80 crore via IPO. It has set a price band of Rs 125-150 a share.

The proceeds would be used to fund expansion at jewellery units in Bhavnagar and Mumbai and invest in its US subsidiary, Renaissance Jeweler New York, it said in its IPO prospectus.