Augmont ₹825 Crore IPO: Gold Silver ETF Liquidity Talks with 8 MFs
Augmont Enterprises has a presence across the entire value chain, including spot trading and refining. The IPO-bound company plans to raise ₹825 crore through an initial public offering, with public subscription opening on August 21. It is in talks with eight mutual funds to provide liquidity and handle physical redemptions under their gold and silver exchange-traded funds.
Augmont will deposit bullion in authorised mutual fund vaults as per their instructions to generate ETF units for trading on stock exchanges. Market makers appointed by the mutual funds buy gold and silver from Augmont for depositing in vaults to create ETF units.
Augmont's online spot trading platform has 5,200 registered jewellers who pay margin before taking a position and can receive bullion delivery in two days from 20 delivery centres across the country.
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The company has 4.9 crore registered customers on its platform, provides gold jewellery weighing 1 gram to 9 grams on EMI in tie-up with NBFCs, and buys back old jewellery through NBFCs for refining.
The IPO comprises a fresh share issuance of ₹620 crore and an offer-for-sale of ₹205 crore by the promoter Kothari family. The price band is ₹750–788 per share, valuing the company at ₹7,200 crore.
Shares are expected to begin trading on the stock exchanges from August 31. The company intends to use proceeds from the fresh shares for future working capital requirements, including inventory procurement and advance margin requirements for inventory procurement.
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