Khazanchi Jewellers
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 24 Jul 2023 – 28 Jul 2023
- Listing date
- 07 Aug 2023
- Face value
- ₹10 per share
- Issue price
- ₹140 per share
- Lot size
- 1,000 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹96.74 Cr
- Market cap at offer price
- ₹346 Cr
- Promoter holding
- 100.00% → 72.08% pre-issue → post-issue
- ISIN
- INE0OWC01011
- Registrar
- Cameo Corporate Services Ltd.
- Lead managers
- Mark Corporate Advisors Pvt.Ltd.
- Registered office
- No: 130, NSC Bose Road, Sowcarpet, Tamil Nadu
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 3,46,000 | — | — |
Application size
Minimum 1,000 shares per lot, in multiples, at ₹140
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,000 | ₹1,40,000 |
| S-HNI (min) | 2 | 2,000 | ₹2,80,000 |
| S-HNI (max) | 7 | 7,000 | ₹9,80,000 |
| B-HNI (min) | 8 | 8,000 | ₹11,20,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 7.62 | — |
| P/E (×) | 18.37 | — |
| Market cap | — | ₹346 Cr |
Key performance indicators
- Return on net worth
- 20.98%
- ROCE
- 18.91%
- Debt / equity
- 1.45
- PAT margin
- 1.57%
- NAV per share
- ₹36.30
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Khazanchi Jewellers
Khazanchi Jewellers Limited is a prominent player in the Indian jewellery industry with a strong presence in both wholesale and retail sectors. The company was incorporated on March 25, 1996 as a private limited company and converted to a public limited company in April 2023. The company specializes in the production and sale of a wide range of jewellery products including gold jewellery, diamond jewellery, precious stones, and fancy jewellery and bullion in the form of coins and bars. The jewellery business has a rich history spanning over three decades, with promoters having over 25 years of expertise in the field. The company offers a diverse range of products including necklaces, chains, rings, earrings, bangles, bracelets, pendants, nose pins, mangalsutras, and kadas, with a focus on creating exquisite wedding jewellery and pieces suitable for festive occasions.
Company Analysis
from RHPKhazanchi Jewellers Limited is a jewellery retailer and manufacturer operating in the Indian gems and jewellery industry, specializing in gold, diamond, and precious stone jewellery across wholesale and retail sectors.
Khazanchi Jewellers Limited is a prominent player in the Indian jewellery industry with a strong presence in both wholesale and retail sectors. The company was incorporated on March 25, 1996 as a private limited company and converted to a public limited company in April 2023. The company specializes in the production and sale of a wide range of jewellery products including gold jewellery, diamond jewellery, precious stones, and fancy jewellery and bullion in the form of coins and bars. The jewellery business has a rich history spanning over three decades, with promoters having over 25 years of expertise in the field. The company offers a diverse range of products including necklaces, chains, rings, earrings, bangles, bracelets, pendants, nose pins, mangalsutras, and kadas, with a focus on creating exquisite wedding jewellery and pieces suitable for festive occasions.
Objects of the Issue
- To finance the establishment of the new show room at Chennai, Tamil Nadu, India - Estimated capital expenditure ₹862.23 Lakhs p.21
- To finance the establishment of the new show room at Chennai, Tamil Nadu, India - Estimated inventory cost for the new showroom to be opened ₹2,000.00 Lakhs p.21
- Funding the working capital requirements of the existing operations of our Company ₹5,500.00 Lakhs p.21
- General Corporate Purposes ₹1,200.00 Lakhs p.21
- Financing establishment of new showroom at Chennai, Tamil Nadu - Capital Expenditure for new showroom ₹862.23 lakhs p.78
- Financing establishment of new showroom at Chennai, Tamil Nadu - Inventory cost for new showroom ₹2,000.00 lakhs p.78
- Augmenting the working capital requirements of the existing operations ₹5,500.00 lakhs p.78
- General Corporate Purposes ₹1,200.00 lakhs p.78
Issue Structure
- Total Issue
- ₹9,674.00 Lakhs
- Fresh Issue
- 69,10,000 Equity Shares of ₹10/- each at ₹140/- per share aggregating to ₹9,674.00 Lakhs
- Offer for Sale
- Nil
- Price Band
- ₹140/- per Equity Share (Fixed Price)
- Lot Size
- 1,000 Equity Shares and in multiples of 1,000 Equity Shares thereafter
- Face Value
- ₹10/- per Equity Share
Business Model
The company earns revenue through the design, manufacturing, and retail sale of jewellery products. It operates through a retail showroom model and also engages in wholesale distribution. The company sources gold primarily from nominated banks and bullion dealers, and also procures diamonds and other precious and semi-precious stones. Revenue is generated from both retail sales through showrooms and wholesale sales of bullion and ornaments.
Business Segments
SWOT Analysis
- • Experienced promoters with decades of jewellery industry expertise(p.20)
- • Diversified jewellery product portfolio across multiple customer segments(p.20)
- • Strong market position in both wholesale and retail sectors(p.20)
- • Over 3 decades of combined promoter experience in jewellery industry(p.102)
- • Wide product range across price points and occasions(p.101)
- • Prime location showroom with high customer traffic(p.102)
- • BIS Hallmark certification and quality assurance(p.100)
- • Strong inventory management and daily reconciliation practices(p.103)
- • Comprehensive security infrastructure and insurance coverage(p.107)
- • Experienced promoter team with 4+ decades combined expertise in jewellery industry(p.171)
- • BIS Hallmark Certificate and import-export credentials enabling bullion trading on IIBX platform(p.171)
- • Diversified product portfolio spanning gold ornaments, bullion, coins and precious stones(p.171)
- • Strong revenue growth trajectory with 87% YoY increase in FY2023 and improving profitability(p.174)
- • Integrated supply chain through group company ownership reducing procurement costs(p.171)
- • Heavy dependence on few suppliers and customers creating revenue concentration risk(p.29)
- • Significant related-party transactions, particularly with Pathik Sales Private Limited(p.29)
- • High level of unsecured borrowings from promoters and group members(p.29)
- • All operations concentrated in single geographic location(p.30)
- • Heavy dependence on promoters and senior management for business continuity(p.28)
- • Significant outstanding debt obligations from both banks and related parties(p.28)
- • Promoters do not own the registered office premises(p.34)
- • Single showroom operational presence limits scale and capacity(p.100)
- • Heavy dependence on bulk buyers for revenue generation(p.103)
- • Geographic concentration of revenue in Tamil Nadu(p.105)
- • No in-house manufacturing capability(p.105)
- • Small employee base of 33 employees(p.109)
- • Pending trademark registration applications(p.109)
- • High dependence on related party transactions with group companies for procurement(p.171)
- • Significant unsecured borrowings from promoters and related parties totalling ₹4,028.38 Lakhs(p.150)
- • Concentrated customer base with major institutional customer concentration risk(p.172)
- • Minimal cash holdings of ₹27 Lakhs against current liabilities of ₹5,650.77 Lakhs(p.177)
- • Single showroom location creating geographic concentration risk(p.171)
- • High leverage with debt-to-equity ratio of 1.45x and borrowings of ₹5,695.48 Lakhs(p.170)
- • High dependence on few suppliers for bullion purchases(p.180)
- • Significant customer concentration for bullion sales(p.180)
- • Unsecured loans from promoters and related parties(p.181)
- • Litigation involving promoters and properties used by the company(p.184)
- • Significant government target for jewellery exports growth(p.20)
- • Strong recovery in international jewellery exports market(p.20)
- • Expansion of retail presence through new showroom establishment(p.21)
- • Large addressable market in the Indian jewellery sector(p.20)
- • Expansion through new showroom opening in Chennai(p.100)
- • Growing gems and jewellery export market(p.99)
- • Expansion into new geographical markets across India(p.102)
- • Increasing organized retail penetration in jewellery sector(p.99)
- • Government support through customs duty reduction and FTA benefits(p.98)
- • Rising gold demand in India(p.98)
- • Expansion into second showroom at 286 NSC Bose Road to increase retail footprint(p.171)
- • Leveraging BIS hallmarking regulatory framework to enhance consumer trust and compliance(p.112)
- • Growing formalisation of jewellery retail through hallmarking mandates creating market consolidation opportunity(p.112)
- • Capitalising on government gold loan schemes and RBI directives to expand financing options(p.111)
- • Tapping wholesale channel expansion given wholesale business model with institutional customers(p.172)
- • Qualified bullion jeweller certification(p.188)
- • Registered with major depository systems(p.187)
- • Volatility in gold and precious stone prices affecting business margins(p.27)
- • Fierce competition from organized and unorganized jewellery retailers(p.31)
- • Discretionary nature of jewellery purchases makes demand vulnerable to economic downturns(p.32)
- • Seasonal fluctuations in sales volumes affecting profitability(p.29)
- • Dependence on RBI policies for gold sourcing through nominated banks(p.27)
- • Potential adverse regulatory changes affecting business operations(p.39)
- • Economic slowdown and inflation impacting consumer discretionary spending(p.39)
- • COVID-19 pandemic and other severe communicable diseases posing operational risks(p.35)
- • Intense competition from organized and unorganized jewellery players(p.108)
- • Gold and precious metal price volatility exposure(p.92)
- • Global economic slowdown impacting demand(p.92)
- • Seasonal fluctuations in jewellery sales(p.108)
- • Dependence on third-party manufacturers for supply(p.104)
- • Regulatory and hallmarking compliance requirements(p.98)
- • Volatility in gold and precious metal prices impacting both inventory valuation and sales volumes(p.174)
- • Intense competition from established jewellery retailers and unorganised sector players(p.172)
- • Regulatory risk from evolving hallmarking and BIS compliance requirements(p.112)
- • Dependence on gold import regulations and foreign exchange controls affecting raw material availability(p.112)
- • Macroeconomic sensitivity to inflation, interest rates affecting consumer discretionary jewellery spending(p.172)
- • Uninsured operational losses and environmental risks in manufacturing and retail operations(p.172)
- • Exposure to interest rate risk and liquidity risk(p.178)
- • Inflation impact on raw material costs and wages(p.178)
- • Credit risk from customer non-payment(p.178)
- • Intensifying competition in jewellery industry(p.179)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Tarachand Mehta | Promoter | 14.66% | — |
| Goutham | Promoter | 11.37% | — |
| Tarachand Mehta and Sons | Promoter | 9.56% | — |
| Goutham HUF | Promoter | 2.61% | — |
| Fancy Devi | Promoter | 6.09% | — |
| Tarachand Mehta | Promoter | 14.66% | 10.57% |
| Goutham | Promoter | 11.37% | 8.20% |
| Fancy Devi | Promoter | 6.09% | 4.39% |
| Tarachand Mehta and Sons | Promoter | 9.56% | 6.89% |
| Goutham HUF | Promoter | 2.61% | 1.88% |
| Tarachand Mehta | Promoter | 14.66% | 10.57% |
| Goutham | Promoter | 11.37% | 8.20% |
| Fancy Devi | Promoter | 6.09% | — |
| Tarachand Mehta and Sons | Promoter Group | 9.56% | — |
| Goutham HUF | Promoter Group | 2.61% | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.