Arjun Jewellers Set to Raise Rs 200 Crore in Updated IPO as Retail Profits Surge Over 80%
Rajkot-based retail jewellery chain, Arjun Jewellers, has refiled its draft prospectus documents with the Securities and Exchange Board of India (SEBI). The company is now seeking up to Rs 200 crore through a maiden public offering (IPO) to fund operational needs and strategic expansion. This updated issuance size reflects the strong financial momentum displayed by the jewellery retailer in recent fiscal years.IPO Details and Fund Utilization
The forthcoming IPO will consist entirely of a fresh issue of equity shares, with no offer-for-sale component. The increased fundraising target comes after the company previously proposed raising Rs 180 crore. Arjun Jewellers plans to deploy a significant portion of these proceeds towards incremental working capital requirements, which amount to Rs 160 crore.These funds are crucial for procuring inventory destined for both existing and newly planned retail showrooms across Saurashtra, Gujarat. The remaining net proceeds from the IPO will be utilized by the company for general corporate purposes.
Impressive Financial Growth Underpins Expansion Strategy
Arjun Jewellers has demonstrated robust financial health, evidenced by its recent performance data. In FY26 alone, the company recorded a substantial rise in profit, which increased 80.5 percent to Rs 27.2 crore from Rs 15.1 crore in the preceding year. Revenue also showed significant growth, surging 55.4 percent to Rs 595.5 crore from Rs 383.3 crore during the same period.The company currently operates four retail showrooms across the Saurashtra region of Gujarat. The strong financial footing is now being leveraged to fuel ambitious expansion plans within the jewellery market.
Aggressive Expansion Plan Drives IPO Refiling
As part of its strategic roadmap, Arjun Jewellers intends to expand its physical footprint by opening two new retail showrooms. These planned outlets include Showroom 5 in Morbi and Showroom 6 in Rajkot. The company confirmed that both locations have been secured via lease agreement. Showroom 6 in Rajkot will be leased specifically from the promoter.The operations at Showroom 5 are anticipated to commence within the coming months, bolstering the company's regional presence. Saffron Capital Advisors has been appointed as the merchant banker for Arjun Jewellers IPO, which is slated for listing on both leading stock exchanges.
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