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12 August 2023

Khazanchi Jewellers Limited IPO: Crafting Precious Moments with Quality Jewelry

Introduction:

Established in 1996, Khazanchi Jewellers Limited, headquartered in Chennai, has been a prominent player in the jewelry segment. Having commenced operations in 1989, the company has etched its presence in both wholesale and retail sectors, offering a wide spectrum of exquisite jewelry pieces.

Dazzling Variety:

Specializing in gold and silver jewelry, Khazanchi Jewellers boasts an impressive array of products. From stunning earrings and necklaces to elegant chains, pendants, rings, bangles, bracelets, nose pins, and traditional mangalsutras, the company presents an opulent collection that caters to diverse tastes and occasions.

Retail and Beyond:

With a showroom located at No. 130, NSC Bose Road, Sowcarpet, Chennai, Khazanchi Jewellers Limited has made its mark in the retail space. In a bid to expand its reach, the company aims to establish additional showrooms in the same city using funds generated through the IPO. Khazanchi Jewellers Group's umbrella encompasses various enterprises such as Sutaliya Finance Private Limited, Khazanchi Silvers Private Limited, Silverslane Proprietorship firm, Pathik Sales Private Limited, and KJ Estates Partnership Firm.

Leadership:

Under the guidance of Mr. Tarachand Mehta, the Managing Director, and Mr. Goutham, the Executive Director, Khazanchi Jewellers Limited continues to thrive and create lasting impressions in the jewelry sector.

Financial Prowess:

Khazanchi Jewellers' financial performance has been consistently positive, underscoring its stability and growth potential. In the financial years 2020, 2021, and 2022, the company reported a Profit After Tax (PAT) of Rs. 230.71 lakhs, Rs. 275.58 lakhs, and Rs. 326.62 lakhs, respectively.

IPO Overview:

The Khazanchi Jewellers IPO, structured as a Fixed Price Issue, has a total issue size of Rs 97.00 Crores. Priced at Rs. 140 per share, the IPO subscription window was open from July 24, 2023, to July 28, 2023. The anticipated listing date on BSE SME is August 7, 2023.

Promoter Holding:

Mr. Tarachand Mehta and Mr. Goutham are the promoters of Khazanchi Jewellers Limited.

Financial Snapshot

The company's financial highlights exhibit its growth trajectory:

Total Assets	Rs. 10,379.93 Lakhs to Rs. 14,506.80 Lakhs
Total Revenue	Rs. 36,165.36 Lakhs to Rs. 48,181.65 Lakhs
Profit After Tax	Rs. 230.71 Lakhs to Rs. 756.49 Lakhs
Net Worth	Rs. 2,269.33 Lakhs to Rs. 3,604.99 Lakhs

Expert Insights:

While Khazanchi Jewellers Limited operates in a competitive jewelry sector, the sharp surge in its FY23 revenue and profits raises concerns regarding sustainability. Even with the exceptional earnings of FY23, the IPO appears to be priced at a premium. Given the circumstances, potential investors might want to exercise caution and consider alternative investment options.

Conclusion:

The Khazanchi Jewellers Limited IPO presents an opportunity to become part of a jewelry enterprise with a notable retail presence and steady financial performance. While the company's growth journey is noteworthy, investors should carefully assess the offering and evaluate their investment strategy in light of the industry's dynamics and financial considerations.

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