Preceding its upcoming initial public offering (IPO), bullion and precious metals company Augmont Enterprises is engaging with eight mutual funds to provide liquidity and manage physical redemptions for their gold and silver exchange-traded funds (ETFs). The details were outlined by company officials, including Non-Executive Director Sachin G Kothari, Whole-time Director Ketan Kothari, and Whole-time Director Mahendra Kumar Nemichand Bafna, during an event in Mumbai.
As part of the proposed arrangement, Augmont will deposit bullion in authorised mutual fund vaults based on instructions to generate ETF units for stock exchange trading. Additionally, market makers appointed by mutual funds will buy gold and silver from Augmont to deposit in vaults for ETF unit creation.
Augmont operates across the entire precious metals value chain, maintaining a spot trading platform, refining operations, digital gold offerings, jewellery manufacturing, and EMI jewellery products. Its online spot trading platform features 5,200 registered jewellers who pay margins before taking positions, with bullion delivery handled within two days across 20 delivery centres nationwide. The platform currently counts 4.9 crore registered customers.
Furthermore, through partnerships with non-banking financial companies (NBFCs), Augmont offers EMI-based gold jewellery ranging from 1 gram to 9 grams, targeting consumers at the bottom of the economic pyramid. Customers pay 20 percent upfront, with the remaining balance spread across 3 to 9 instalments. The company also buys back old jewellery via NBFCs to refine at its facility.
The company's upcoming IPO aims to raise ₹825 crore. This comprises a fresh share issuance of ₹620 crore and an offer-for-sale (OFS) of ₹205 crore by the promoter Kothari family. The price band has been established at ₹750 to ₹788 per share, valuing the enterprise at ₹7,200 crore.
Public subscription for the offer is scheduled to open on August 21, with trading on stock exchanges expected to commence by August 31. The minimum bid is set at 19 equity shares, with subsequent bidding in multiples of 19. Retail investors are looking at a minimum investment of ₹14,972, capped at a maximum investment of ₹1,94,636.
Augmont intends to deploy the proceeds from the fresh issue toward working capital requirements. This includes procuring, maintaining, and scaling up inventory, as well as funding advance margin requirements for inventory procurement.
"Augmont's move to engage with mutual funds ahead of its ₹825 crore public offering highlights a well-integrated approach to bridging physical bullion operations with financial market products like ETFs. By spanning the entire value chain from spot trading to refining and retail EMI offerings, the company has built a comprehensive operational model. For investors looking at the precious metals sector, connecting vault liquidity directly with mutual fund mechanisms provides operational clarity as the company scales its market presence." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
