PC Jeweller has filed DRHP (Draft Red Herring Prospectus) with market regulator Securities Exchange Board of India for a public issue of rupees 570 Crore for its expansion. The company will enter the capital market with its IPO of 4.51 Cr equity shares of FV (Face value) of Rs 10 each.
Presently the promoter’s holds 93.61 per cent stake and this issue will constitutes 25.20% of the paid-up capital. The company posted an annual turnover of rupees 1993.84 Cr in FY 10 and a net profit of rupees 146.7 Cr during the same period.
PC Jeweller is Delhi based jewellery which offers wide range of products on gold and diamond jewellery. Currently the company has 20 jewellery showrooms and it intends to establish 26 stores this includes 6 overseas showrooms and 20 showrooms in different parts of the country. The expansion is scheduled for FY 2013 and FY 2014. The proceeds of the issue will be utilised for capital expenditure which will be required for interior works at those showrooms and also for working capital requirement.
In order to meet the domestic demand the company has jewellery manufacturing facilities in Uttarahkhand and 2 facilities at Noida to cater its exports market. Apart from its retail operations the company also sells gold & diamond jewellery to retailers at wholesale prices. It also exports gold & diamond jewellery to distributors in Hong Kong, Singapore and Dubai. To manage its public issue SBI Capital Markets and Kotak Mahindra Capital Company has been appointed as the BRLMs (book running lead manager) and IDBI Capital Market Services has been appointed as the co-book running lead manager.
“Bell the bull says: PC Jeweller will have a total of 46 showrooms in India and abroad.”