Strong investor response on Day 2
Priority Jewels' initial public offering (IPO) continued to attract strong interest on the second day of bidding, with the issue subscribed more than 10 times by late morning on August 31. According to data from the National Stock Exchange (NSE), the Rs 5-crore issue received bids for 3,49,20,075 shares against 32,02,500 shares available for subscription, as reported by Moneycontrol.
The subscription momentum was led by non-institutional investors (NIIs), whose portion was subscribed 75 times, followed by retail investors at 34 times, Moneycontrol reported. Other reports placed the overall subscription at varying levels: The Economic Times cited a subscription of 61 times against 02 lakh shares on offer, while Lokmat Times reported 41 times. A separate report from trade indicated a subscription of 87 times as of the morning, with retail at 36 times and small HNI (sHNI) at 68 times.
The IPO opened for subscription on August 28 and will close on September 1. The allotment is expected to be finalised on September 2, with shares tentatively scheduled to debut on the BSE and NSE on September 4.
Grey market premium signals possible listing gain
In the grey market, Priority Jewels shares were commanding a premium of Rs 45 over the upper price band of Rs 200, according to InvestorGain, as reported by Moneycontrol. This translates to a potential listing gain of about 5 percent if the premium holds until listing. The Economic Times reported a similar grey market premium of around 23 percent, estimating a listing price of approximately Rs 245 per share.
Grey market premiums are unofficial indicators and can change quickly. They are not regulated by stock exchanges and do not guarantee actual listing prices or returns, as noted by multiple sources.
Issue details
The public issue consists entirely of a fresh issue of approximately 75 lakh shares, with a price band set at Rs 190-200 per share, as reported by Moneycontrol. At the upper price band, the issue size stands at around Rs 5 crore. The lot size is 75 shares, requiring retail investors to make a minimum investment of Rs 15,000 at the upper price band.
Ahead of the IPO, Priority Jewels raised Rs 45 crore from four anchor investors through the allotment of 72 lakh shares at Rs 200 apiece, as reported by Moneycontrol. WhiteOak Capital Equity Fund and Sanshi Funds were the biggest participants, investing approximately Rs 65 crore each, while Plutus Investment Trust and Khandelwal Finance invested around Rs 07 crore each, the report added. The company had also mobilised Rs 6 crore through a pre-IPO placement involving 25 lakh shares, according to Moneycontrol.
Mefcom Capital Markets Ltd. is the book-running lead manager for the issue, while MUFG Intime India Pvt. Ltd. is acting as the registrar, as stated in The Economic Times.
Company profile and financials
Priority Jewels Limited, incorporated in 2007 and headquartered in Mumbai, designs, manufactures and sells lightweight diamond-studded gold and platinum jewellery. The company supplies to major retail chains including CaratLane, Kalyan Jewellers, Reliance Retail, Malabar Gold & Diamonds, Tribhovandas Bhimji Zaveri and Senco Gold, as reported by The Economic Times and Moneycontrol. It operates two manufacturing facilities in Mumbai spanning 79 sq ft and 84 sq ft respectively, according to trade. The company is promoted by Shailesh Sangani (MD) and Tushar Mehta (CFO), who bring over three decades of experience in the gems and jewellery industry, the report added.
According to financial data reported by trade, Priority Jewels recorded total income of Rs 03 crore in FY26, up from Rs 87 crore in FY25, a 24 percent increase. Profit after tax rose 68 percent to Rs 65 crore in FY26 from Rs 51 crore in the previous financial year.
Use of proceeds and analyst view
Priority Jewels intends to deploy Rs 75 crore of the net IPO proceeds towards repayment of certain working-capital borrowings, with the balance earmarked for general corporate purposes, as reported by The Economic Times and Moneycontrol.
Anand Rathi, in a research report, described Priority Jewels as a jewellery manufacturer specialising in lightweight, affordable, diamond-studded gold and platinum jewellery, with a business model focused on backend manufacturing for leading jewellery retailers, similar to Sky Gold. The report assigned a "Subscribe for Long Term" rating to the issue, noting the company's long-standing relationships with major customers and potential for expansion into adjacent segments. It also flagged risks including fluctuations in gold prices, changing consumer preferences and intense competition.
The company remains exposed to these risks, but its established customer base and positioning in the growing affordable and designer jewellery segment appear to place it well to benefit from rising demand, according to the report. Capacity expansion, balance-sheet deleveraging and diversification into silver jewellery, lab-grown diamond jewellery and high-end jewellery could provide additional growth opportunities, it added.