Fine jewellery manufacturer Priority Jewel’s initial public offering is seeing big investor interest. The issue has been fully booked on its first day of bidding. So far, the Rs 92 crore issue has been subscribed 1.45x, with the retail portion driving demand, being subscribed 2.34x, while the QIBs and NII portions are yet to be fully subscribed, as of the time of reporting. 

Ahead of its opening, the issue raised Rs 27.45 crore via anchor bidding, and its shares are trading in the grey markets at a premium of more than 18%. The company has fixed the share price band at Rs 190 to Rs 200. 

Priority Jewels IPO: Offer Size and BRLM

The Mumbai-based jewellery designer aims to raise Rs 91.50 crore via the issuance of 45.75 lakh fresh equity shares of face value Rs 10 each. Mefcom Capital Markets is the book-running lead manager of the issue, while MUFG Intime India is the registrar to the offer. 

Priority Jewels IPO: Lot size

In order to apply for the IPO, retail investors need to bid for a minimum of one lot comprising 75 shares, equating to an investment of Rs 15,000. While the maximum number of lots retail applicants can bid for is 13. 

For small high-net-worth individuals, the lower limit is 14 lots, while the upper cap is set at 66 lots, and big HNIs can bid for a minimum of 67 lots. 

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Priority Jewels IPO: GMP at 18%

In the unlisted markets, the shares of Priority Jewels are trading at Rs 237 apiece, reflecting a grey market premium of 18.50%, or gains of Rs 37 per share, based on the upper end of the share price band. 

This reflects a profit of Rs 2,775 per lot. However, readers must know that GMP is an unofficial metric to estimate the listing price and depends on market conditions.

Priority Jewels IPO: Subscription timeline

Priority Jewels, which opened its IPO for public bidding on August 28, will close its subscription on September 1. Its share allotment process is expected to be completed by September 2, and investors are likely to receive their shares and refunds by September 3. 

The company is expected to list on NSE and BSE by September 4. 

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Priority Jewels IPO: Brokerage commentary 

“At the upper price band, based on FY26 earnings, the issue is valued at 20.5x P/E and 13.9x EV/EBITDA, implying a post-issue market capitalization of Rs 3,600 million, making the issue fully priced,” said Anand Rathi Research Team in an IPO note. 

The brokerage gave the IPO a “Subscribe for Long Term” rating, adding that its business remains exposed to fluctuations in gold prices, changing consumer preferences, and the competitive jewellery manufacturing market.  However, it noted that Priority Jewels is well positioned to benefit from the growing demand for affordable and designer jewellery.