Thangamayil Jewellery Reports 96% Utilization of Rs 510 Crore Rights Issue Proceeds

Thangamayil Jewellery Limited has made significant progress in utilizing the funds raised from its Rs 510 crore rights issue, according to a recent monitoring agency report submitted by CARE Rating Limited. The report, which covers the quarter ended June 30, 2025, reveals that the company has already deployed 96% of the total proceeds across various strategic initiatives.

Key Highlights of Fund Utilization

Total Utilization: Rs 489.44 crore out of Rs 510 crore (96% of total proceeds)
Unutilized Amount: Rs 20.56 crore

Breakdown of Fund Allocation

Purpose	Allocated (Rs crore)	Utilized (Rs crore)	Utilization %
Capital Expenditure for New Stores	8.71	8.71	100%
Inventory for New Stores	401.03	380.51	95%
General Corporate Purposes	97.67	97.67	100%
Rights Issue Expenses	2.59	2.55	98%

Capital Expenditure for New Stores

Purpose: Setting up six new retail stores
Fully utilized allocation of Rs 8.71 crore

Inventory for New Stores

Utilized Rs 380.51 crore out of Rs 401.03 crore allocated
Remaining: Rs 20.52 crore

General Corporate Purposes

Fully utilized allocation of Rs 97.67 crore

Rights Issue Expenses

Utilized Rs 2.55 crore out of Rs 2.59 crore allocated
Remaining: Rs 0.04 crore

Additional Details

The rights issue was conducted from February 21 to March 4, 2025
Funds raised:
- Rs 178.50 crore from promoters through converted unsecured loans
- Rs 331.50 crore through allotment to other investors
The monitoring agency reported no deviations from the stated objectives of the rights issue

Regulatory Compliance and Approvals

Thangamayil Jewellery has obtained necessary government approvals for its new stores, including:

BIS standards certification
GST registration
Labor department clearances

Management of Unutilized Funds

The company has invested the unutilized funds as follows:

Bank	Investment Type	Amount (Rs crore)	Return
Yes Bank	Fixed Deposit	10.00	5.80%
HDFC Bank	Fixed Deposit	19.08	6.00%
Monitoring Account	Cash	0.16	-

Conclusion

The monitoring agency report indicates that Thangamayil Jewellery Limited is making efficient use of the funds raised through its rights issue, with a clear focus on expansion through new store openings and inventory management. The high utilization rate of 96% suggests that the company is executing its growth strategy as planned, with only a small portion of the funds remaining to be deployed.

Investors and stakeholders can take note of the company's adherence to its stated objectives and the transparent reporting of fund utilization, which is a positive indicator of the management's commitment to growth and shareholder value creation.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.67%	+5.06%	+2.64%	-2.25%	-3.39%	+974.11%

Thangamayil Jewellery Limited , a prominent player in the Indian jewellery market, has announced a significant dividend payout along with robust first-quarter results. The company's performance reflects its resilience and growth strategy in a challenging market environment.

Dividend Announcement

At the 25th Annual General Meeting held on July 28, 2025, Thangamayil Jewellery's shareholders approved a final dividend of Rs. 12.50 per equity share. This dividend represents 125% of the face value of Rs. 10 per equity share and is scheduled to be paid on or before August 20, 2025. The substantial dividend payout underscores the company's commitment to delivering value to its shareholders.

Q1 Financial Highlights

The company's unaudited financial results for the quarter ended June 30, 2025, reveal a strong performance:

Metric	Q1 Performance	Year-over-Year Change
Total Sales	Rs. 1,555.00 crore	+27%
Retail Sales	Rs. 1,505.00 crore	+28%
Gross Profit	Rs. 167.00 crore	+29%
EBITDA	Rs. 87.00 crore	-
Profit After Tax (PAT)	Rs. 46.00 crore	Decrease from Rs. 57.00 crore
Earnings Per Share (EPS)	Rs. 14.71	Decrease from Rs. 20.61

EBITDA margin maintained at 5.78% of retail sales.
EPS reported on an enhanced capital base post rights issue.

Operational Performance

Retail Network Expansion: Increased retail outlets to 64, up from 58 in the previous year, including new stores in and around Chennai.
Product Mix:
- Gold jewellery sales grew by 27% to Rs. 1,375.00 crore.
- Non-gold sales (including silver and diamonds) surged by 34% to Rs. 130.00 crore.
Volume Trends:
- Gold ornament volume decreased by 4%.
- Silver product volume increased by 11%.
- Diamond product volume grew by 22%.

Market Challenges and Strategy

Thangamayil Jewellery faced headwinds due to a steep 28% increase in gold prices during the quarter, which impacted volume sales. However, the company maintained its gross profit margin at around 11%, demonstrating effective cost management and pricing strategies.

The company's expansion into Chennai with five new retail outlets is part of its growth strategy. Two additional outlets in Gowrivakkam and Urapakkam were opened in July 2025, with plans for a sixth outlet in Avadi, Chennai suburbs, by September 2025.

Financial Position

Liquidity: Reported liquid funds of Rs. 400.00 crore, including undrawn bank facilities and rights issue balance, a significant increase from Rs. 119.00 crore in the previous year.
Inventory Management: Inventory hedging improved to 94% from 88% year-over-year, indicating better risk management practices.

Outlook

While the steep increase in gold prices has moderated volume growth, Thangamayil Jewellery remains optimistic about future quarters. The company expects volume improvements if gold prices stabilize or decrease. The expansion into Chennai and surrounding areas is anticipated to drive growth and market presence in the coming periods.

Thangamayil Jewellery's performance in Q1, coupled with its strategic expansion and shareholder-friendly dividend policy, positions the company well for sustained growth in the competitive Indian jewellery market.