The company proposes to utilize the net proceeds to meet capital to purchase new equipment, repay its debts/loans, and general corporate purposes.

The table below (in lakhs) shows the restated Financial Information of the company over the last 3 fiscal years for the period ended on 31.12.2024.

The jewelry sector is considered one of the most important sectors, which contributes about 7% to the Indian economy. India’s manufacturing sector is significantly increasing and with the help of many government initiatives, it has become a global hub for foreign investments and is projected to reach USD 1 trillion by 2025-2026.  

The gold market is significantly growing due to the high consumer demand. The prices have hit new highs this year and gained 17% to reach a record Rs. 88, 946/10g.

The growing surge in gold price may have limited its purchases but has driven the sale of old gold. The Gold ETF has given positive net flows and is still increasing.

There has also been a sharp decline in gold imports since November due to the rising prices but the spending on gold jewelry is still increasing and it remains India’s top-performing asset.

• The company is largely dependent on a few of its suppliers and procures its main raw material i.e. 24 karat gold from these suppliers and does not have any long-term agreements with these suppliers, any disruption in the chain of supply may adversely affect the business operation and financial conditions.
• The company’s operations are subject to market fluctuations of gold prices and customer preferences which could impact costs and profitability, failure to adjust to the evolving customer taste and price fluctuation may disproportionately affect the business operations.
• The company derives substantial portion of its revenue from a few customers, any reduction in purchases by these customers may adversely affect the business operation and financial conditions.
• The company faces big competition from many well-established jewelry businesses in the market. The company has to be consistent and maintain the quality and purity of its products in order to become a prominent player in this line of industry.
• The company has availed certain borrowings and failure to repay these borrowings may adversely affect the business operation and financial conditions.

The company is in the manufacturing business of gold jewelry, which is a prominent sector that contributes significantly towards the country’s economy.

The demand for gold jewelry is still high given the surging gold prices and it still remains the most invested asset in India. 

The company has a diverse product portfolio and has shown positive growth since its inception but is also subject to many risks as outlined in the RHP draft and competition, investors should analyze the risks given in the RHP draft before investing.

The company with the help of this Initial Public Offering (IPO) aims to purchase machinery, repay its debts, and for general corporate purposes. It has shown healthy profits over the years but is also subject to many risks like the rising gold prices, which the investor should outline before investing.