PC Jeweller will hit the capital market on December 10 with an initial public offer (IPO) to raise up to Rs 609 crore for funding its expansion plans.

The company has fixed the price band of the IPO, comprising of over 4.51 crore equity shares, at Rs 125-135 per share having a face value of Rs 10 each. The public issue will close on December 12.

At the upper band, PC Jeweller would raise a little over Rs 609 crore through the IPO, while at the lower band, the company would mop up Rs 564 crore.

The IPO would constitute 25.2 per cent of the post-issue paid-up equity share capital of the company. The company is offering a discount of Rs 5 to retail individuals.

In September last year, PC Jeweller had filed the draft document with market regulator SEBI for its IPO to raise funds for expansion and working capital requirement.

At present, the company has 30 showrooms across the country and it has plans to open 20 new retail showrooms by utilising funds raised through IPO.

The Delhi-based jeweller had posted a turnover of about Rs 3,000 crore in 2011-12 fiscal.

The company has two jewellery manufacturing facilities in Uttarakhand that cater to the domestic market and two facilities at Noida for the export market. It also exports gold and diamond jewellery on a wholesale basis to distributors in Dubai, Hong Kong and Singapore.

The shares are proposed to be listed on the National Stock Exchange (NSE) and the BSE. The book running lead managers to the IPO are SBI Capital Markets and Kotak Mahindra Capital Company and the co-book running lead manager is IDBI Capital Market Services.

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