PC Jeweller to raise Rs 609 cr from IPO

Leading jewellery brand PC Jeweller (PCJ) today said it is planning to raise up

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to Rs 609 crore from its proposed IPO to fund its expansion plans and has fixed the price band between Rs 125 and Rs 135 per share.

The Initial Public Offering (IPO) comprises over 4.51 crore equity shares and the public issue will open on December 10 and close on December 12.

At the upper band, PC Jeweller would raise a little over Rs 609 crore through the IPO, while at lower band, the company would mop up Rs 564 crore.

The company proposes to utilise the IPO funds for its expansion plans and towards working capital requirements.

The IPO would constitute 25.2 per cent of the post-issue paid-up equity share capital of the company. The company is offering a discount of Rs 5 to retail individuals.

"We currently have 30 stores under PCJ brand. We are planning to utilise the funds raised from the capital market to open 20 new stores across the country by FY14. These new establishments will be in line with our strategy of large format showrooms," company Managing Director Balrram Garg told reporters here.

The total estimated capital required for this expansion would be about Rs 598.50 crore, he said.

The Delhi-based jeweller had posted a turnover of about Rs 3,674.2 crore and profit after tax at Rs 2,31.29 crore in 2011-12 fiscal.

The company has two jewellery manufacturing facilities in Uttarakhand that cater to domestic market and two facilities at Noida for export market.

PCJ also exports gold and diamond jewellery on a wholesale basis to distributors in Dubai, Hong Kong and Singapore.

The book running lead managers to the issue are SBI Capital Markets and Kotak Mahindra Capital Company and the co-book running lead manager is IDBI Capital Market Services.

The company's shares are proposed to be listed on the National Stock Exchange (NSE) and the BSE.

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