Mumbai-based precious metals management company Augmont Enterprises is looking to use the proceeds from its ₹825 crore initial public offering to expand its precious metals business, with increasing working capital, adding jewellers to its platform and growing its consumer business among its key priorities.
Augmont Enterprises’ ₹825 crore IPO will open on August 21 and close on August 25 and comprise a ₹620 crore fresh issue and an offer for sale of ₹205 crore. The price band has been set at ₹750-788 per share. The company operates across the gold and silver value chain, with its B2B spot platform forming the bulk of the business.
It currently has 5,223 jewellers on the platform and operates through 20 delivery centres across India. The company said the fresh capital will help it cater to higher demand from jewellers and support volumes as gold prices rise. Sachin G Kothari, Non-Executive Director, said around 75% of the IPO proceeds will be used for working capital.
Higher gold prices have reduced the company's tonnage from 61 tonnes in FY25 to 53 tonnes in FY26, even as demand from jewellers remains strong. Additional capital is expected to help Augmont address this demand and maintain its volumes. The company also sees room to expand its B2C business, which has been growing faster than its core B2B operations.
B2C contributed 3% of overall revenue in FY24 and increased to 7% in FY26. Its margins are also significantly higher, with B2C products generating margins of around 1-3%, compared with 0.25-0.45% for the B2B business. Ketan Kothari, Promoter and Whole-time Director, said the company's strategy is focused on onboarding more jewellers, expanding its delivery network and building partnerships for the B2C business."Today, we have 4.9 crore customers on the Gold for All platform," Kothari said, adding that the company has 218 fintech partners integrated through APIs and 4,691 touchpoints.
The company plans to expand this ecosystem further and grow its consumer-facing business. Augmont has also seen an improvement in its profitability at the consolidated level. Its profit after tax margin increased from 0.2% to 0.35%, helped partly by the rise in B2C contribution.
Going ahead, the company expects technology-led platform expansion to remain the main driver of growth. It also plans to improve its refinery operations through additional accreditations and supply-chain efficiencies. International business, meanwhile, contributes around 6% of revenue.
Augmont manufactures jewellery at its SEZ facility in Jaipur and exports to markets including Hong Kong, the UAE and Turkey. The company said it intends to maintain the export business at broadly the current level, as it remains largely order-driven.
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