Priority Jewels

IPO Size: Rs. 92 cr, entirely Fresh Issue  

• For repaying Rs. 75 cr of Rs. 110 cr gross debt

Price band: Rs. 190-200 per share

• Rs. 15.7 cr raised in pre-IPO placement in Feb 2026 at Rs. 190 per share

M cap: Rs. 360 cr, implying 25% dilution

IPO Date: Fri 28^th Aug to Tue 1^st Sep 2026, Listing Fri 4^th Sep 2026

Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.

 

Mumbai based B2B Jeweler

Priority Jewels is a MIDC, Andheri based B2B jeweler engaged in making gold jewellery, such as rings, earings, pendants, at its two facilities in Mumbai. With nearly 60% capacity utilization, one facility is exclusively for exports, which accounts for nearly half of Rs.600 cr topline. Company hedges gold and forex prices, so earnings do not include treasury operations.

 

High Working Capital

In the last 4 years, company’s topline has growth at just 8% CAGR. In FY26 though, financials have strengthened, with revenue at Rs. 539 cr and PAT at Rs. 17.6 cr, expanding net margin from 1.0% in FY23 to 3.3% in FY26.

Further in Q1FY27, on Rs. 147 cr revenue, PAT was Rs. 6.5 cr, leading to 4.4% net margin. EPS stood at Rs. 5 for Q1FY27 and at Rs. 14 for FY26.

Working capital requirement of 145 days is quite a stretch, due to high debtors and inventory of 90 days each, limiting RoE. Post IPO, RoE may contract to around 13%, from 15-16% at present.

 

Fully Priced Nano-cap Jeweller

M cap of Rs. 360 cr implies a PE multiple of 12x on FY27E EPS of Rs. 16.5, on interest savings due to partial debt repayment. This makes the IPO fully priced for a tiny B2B player with 4% net margin and low-teen RoE.

Even other listed B2B peers like RBZ, Shanti Gold, recently-listed Shankesh are trading at PE multiples of 10-12x, for higher net margin.