Renaissance Jewellery and Shree Ganesh Jewellers are planning to raise close to Rs 400 crore from domestic market, while similar trend is being witnessed in US and Europe also. Two other players — PP Jewellers and Mehrasons Jewellers — are also toying with IPO plans in the near future.

Five key players from this segment are already listed in India and the market is expecting more such issues as the surge in the consumers’ disposable income is pushing up the demand for gems and jewellery products. Other than funds, the brand-value associated with a listed company is also attracting the jewellers.

“It is an encouraging trend that a lot many jewellery companies are realising the benefits of getting listed on Bombay Stock Exchange,” Kejriwal Research and Information Services (KRIS) head Arun Kejariwal said.

“Raising money from equity market is easier, cheaper and faster compared to debt market. Besides, getting listed gives an ‘identity’ in a competitive market,” he said. “It not only brings transparency in business, but also boosts confidence to start new projects,” Gems and Jewellery Export Promotion Council Chairman Sanjay Kotari said.

Surge in share prices

Mumbai-based Renaissance Jewellery, a leading exporter of studded gold and platinum jewellery is raising about Rs 80 crore via IPO. It has set a price band of Rs 125-150 a share. Kolkata-based Shree Ganesh Jewellers is likely to go public by March next year.

Besides, Delhi-based Mehrasons Jewellers and P P Jewellers are also warming up their way to the capital market. Out of the five major listed companies from this segment, three have witnessed a robust surge in their share prices. Rajesh Exports has seen a whopping jump of 145.19 per cent since the beginning of this year.

Flawless Diamond’s shares also surged nearly 100 per cent this year. Similar trend was witnessed for Gitanjali Gems with share price rising by 76 per cent this year.