Priority Jewels IPO

India’s gems and jewellery industry contributed around 7% to GDP and accounted for nearly 15% of merchandise exports. The domestic market reached ₹9,998.17 billion in CY25 and is projected to grow at a 12.82% CAGR to ₹18,271.62 billion by CY30P.  

India is the world’s largest cutting and polishing centre and processes nearly 90% of the world’s polished diamonds by volume.  

The segment was valued at ₹6,134.42 billion in CY25 and is expected to reach ₹10,430.14 billion by CY30, growing at an 11.20% CAGR. Gold accounted for the largest share at 80.12% in CY25.  

The lightweight jewellery market stood at ₹2,748.24 billion in CY25 and is projected to reach ₹5,457.92 billion by CY30P, registering a 14.71% CAGR.  

The daily-wear jewellery segment was valued at ₹1,191.66 billion in CY25 and is expected to reach ₹2,357.04 billion by CY30P, growing at a 14.62% CAGR.  

Online jewellery sales are expected to grow rapidly, with the market projected to increase from ₹327.82 billion in CY25 to ₹889.39 billion by CY30P, representing a 22.09% CAGR.  

Bridal jewellery accounted for 55.50% of the wholesale gold jewellery market in CY25, followed by occasional wear at 34% and daily wear at 10.50%. Bangles and bracelets were the largest product category, accounting for 33.18%.  

India’s gems and jewellery exports stood at around ₹2.44 trillion in FY26. The UAE was the largest export market with a 31.11% share, followed by Hong Kong at 21.72% and the US at 18.39%.  

Gold jewellery exports increased 4.67% year-on-year to ₹993.70 billion in FY26, supported by demand for plain gold and lightweight jewellery in international markets.  

India imports more than 90% of its gold requirements. Gold imports increased 30.58% year-on-year to ₹6,395.22 billion in FY26, exposing jewellers to global gold price movements and currency fluctuations.  

The government permits 100% FDI under the automatic route in the G&J sector. Changes in customs duties on gold, silver and diamonds also continue to influence the industry's cost structure and competitiveness.  

Repayment or pre-payment of borrowings: ₹75 crore will be used to repay or pre-pay, fully or partly, certain borrowings of the company.  

General Corporate Purposes: The remaining portion of the proceeds will be used for general corporate purposes. 

Priority Jewels offers a range of affordable jewellery, including rings, earrings, pendants, neckwear, bracelets and mangalsutras. Its in-house design team of 39 professionals increased design output from 5,231 in FY24 to 8,356 in FY26.  

The company operates two manufacturing facilities in Mumbai with capabilities spanning design, production and supply of finished jewellery. Its facilities use technologies such as 3D printing, CAD/CAM, laser cutting, and lab-grown diamond detection systems.  

Priority Jewels supplies jewellery to major retail chains, including CaratLane, Kalyan Jewellers, Reliance Retail, Malabar Gold & Diamonds, TBZ and Senco Gold. These long-standing relationships support its B2B business model.  

Promoters Shailesh Sangani and Tushar Mehta have extensive experience in the gems and jewellery industry. Shailesh Sangani also has experience with industry organisations, including the Gemmological Institute of India and GJEPC.  

As of June 30, 2026, the company served more than 200 customers across 21 states and 3 union territories in India. It also exported jewellery to 13 countries, including the US, UAE, Hong Kong and Norway.  

India’s lightweight jewellery market is projected to grow from ₹2,748.24 billion in CY25 to ₹5,457.92 billion by CY30P, registering a 14.71% CAGR. Priority Jewels' focus on lightweight and daily wear jewellery could help it participate in this growing segment.  

The company plans to increase its manufacturing and distribution of lab-grown diamond jewellery. Its existing manufacturing infrastructure can be used for LGD jewellery without major changes to production capabilities.  

Priority Jewels is expanding into new segments and markets through entities such as Venice Dia Jewel, Acura Jewels, Bombay Carats.com and Brillix Private Limited. It is also exploring partnerships to expand its distribution network in Tier 2 and Tier 3 cities.  

The company plans to explore the jewellery findings segment, which includes components such as chains, spring locks, posts, and backs, providing an opportunity to expand into an adjacent part of the jewellery value chain.  

The top 10 customers contributed 53.19% of revenue for the three months ended June 30, 2026, while the top five accounted for 33.36%. Losing a major customer or a reduction in orders could affect the company's revenue and profitability.  

Priority Jewels mainly operates through purchase orders and short-term B2B arrangements without long-term volume commitments. This can make revenue forecasting and production planning difficult.  

The company does not have long-term procurement contracts for precious metals and diamonds and relies on spot purchases. Raw materials accounted for 92.53% of total expenses in FY26, exposing the company to supply and cost fluctuations.  

The business requires substantial funds for raw materials, work-in-progress, and finished inventory. Customer credit periods can extend up to 120 days, while trade receivables stood at ₹1,417.60 million as of June 30, 2026.  

Maharashtra accounted for 69.13% of domestic sales in FY26 and 58.19% in the three months ended June 30, 2026. The company's export revenue is also concentrated in a few markets.  

The company does not register its custom jewellery designs under the Designs Act, 2000. Its Priority Jewels brand name and logo are also not registered trademarks, exposing the company to potential design duplication and brand-related disputes.  

Priority Jewels operates primarily in the jewellery business. A downturn in the jewellery industry could therefore have a direct impact on its overall financial performance.  

Some promoters acquired their shares at significantly lower prices than the IPO price. For instance, Shailesh Sangani's average acquisition cost is ₹1.20 per share, which could result in substantial gains for existing shareholders after the IPO.  

The US accounts for around 32% of India's G&J exports. Higher tariffs or other trade restrictions could increase the cost of Indian jewellery in the US market and affect export demand.  

Fluctuations in gold, platinum, and diamond prices can increase input costs and put pressure on the company's margins, despite its hedging measures.  

Priority Jewels operates in a fragmented market and competes with organised players as well as unorganised jewellery manufacturers. The unorganised segment accounted for 57.34% of India's diamond wholesale market in CY25.  

The jewellery industry depends heavily on skilled artisans. A shortage of trained workers could affect production capacity and increase labour costs.  

Jewellery relies on third-party agencies for processes such as BIS hallmarking and diamond grading. Any reputational or operational issues involving these agencies could affect customer confidence. 

Priority Jewels IPO DRHP 

Priority Jewels IPO RHP 

Mefcom Capital Markets Limited 

Contact Number: 022-49186000 

Email Address: priorityjewels.ipo@in.mpms.mufg.com