PC Jeweller plans to have 50 stores by FY14-end

At present, jewellery house has 30 showrooms in 23 cities across eight states

Delhi-based PC Jeweller, which is coming up with an initial public offer (IPO), plans to have 50 showrooms across the country by the end of financial year 2013-14. It also plans to expand to four more states from present eight states which are mainly located in North and Central India.

By the current financial year, the company would also open two stores in Gujarat, one each in Ahmedabad and Vadodara.

This expansion plan of the company was revealed by its Managing Director Balram Garg on Wednesday in Ahmedabad, where he also announced the Rs 600 crore IPO of the PC Jeweller.

"At present, we have 30 showrooms in 23 cities across eight states. We plan to add seven more this year and 13 others in 2013-14. Thus our target is to have 50 showrooms with a total area of 300,000 sq ft by the end of FY14," Garg said.

Off late couple of jewellery houses have come up with IPOs the prominent being Tribhuvandas Bhimji Zaveri (TBZ) and Tara Jewels. When asked about reason for jewellers opting for IPO route to raise funds Garg said, "This is because the jewellery sector is getting organised. The growth in organised sector was about 30-40%," Garg said.

PC Jeweller also launched its IPO worth Rs 600 crore at a price band of Rs 125-135 a share. The IPO will open on December 10 and will close on December 12 for all bidders. The company is offering a discount of Rs 5 to retail individuals.

The Delhi-based jeweller has offered close to 45 million shares and plans to raise anywhere between Rs 564 crore (at the lower end of the price band) and Rs 609 crore (at the upper end of the price band).

Garg said that they propose to utilise the IPO funds for its expansion plans, inventory and capex growth.

Through this IPO, the company plans to dilute about 25% of its stake. Of the 45 million shares on offer, about 350,000 shares have been reserved for eligible employees. Bids to be made are for a minimum of 90 equity shares and in multiples of 90 equity shares thereafter.

The issue is proposed to be listed on the BSE and the NSE.