Advit Jewels launches its ₹165.15 crore initial public offering for subscription on June 23. The Jaipur-based jewellery manufacturer intends to use the capital to pay down debt and expand its retail showroom network. The issue remains open until June 25, with shares offered in a price band of ₹130 to ₹138.
What Happened
Advit Jewels, a jewellery manufacturer based in Jaipur, is entering the public market with an initial public offering (IPO) scheduled to open for subscription on June 23, 2026. The company is offering shares in the price band of ₹130 to ₹138. The total issue size is ₹165.15 crore, consisting entirely of a fresh issue of 1.19 crore shares. The subscription window will remain open for three days, concluding on June 25.
Why The Company Is Raising Funds
Advit Jewels plans to deploy the capital raised from the IPO across three key areas. A significant portion of the proceeds, ₹65 crore, is designated for debt repayment, which is intended to strengthen the company’s balance sheet. Another ₹65 crore is allocated to meet working capital requirements to support ongoing operations. The remaining funds are earmarked for the expansion of the company's retail showroom network, aiming to increase its physical footprint.
Financial Snapshot
According to financial disclosures reviewed by the brokerage firm SMIFS, the company has reported a compound annual growth rate (CAGR) of 63.7% in revenue between FY23 and FY25, reaching ₹1,249.4 million by the end of FY25. Profitability metrics also showed growth, with gross profit margins recorded at 32.9% and an EBITDA of ₹371.5 million for the same period. The company produces a range of jewellery, including Kundan, Polki, and Jadau designs, using manufacturing technologies like 3D printing and laser cutting.
Valuation and Grey Market Context
Brokerage firm SMIFS has analyzed the IPO, noting that the company is valued at approximately 17 times its FY25 earnings. While grey market premiums (GMP)—unofficial price indicators for unlisted shares—have been reported around ₹65, suggesting a potential listing premium of roughly 47%, these numbers are not official and do not guarantee actual listing performance. Market sentiment can shift quickly, and grey market figures often fluctuate based on speculative demand rather than long-term business value.
Business Risks and Competition
The jewellery sector in India is highly competitive and fragmented. Advit Jewels faces pressure from both large, established national retail chains and countless local jewellers. The business model is also sensitive to fluctuations in the price of precious metals, primarily gold. Any sharp movement in raw material costs can impact profit margins if the company cannot pass those costs to customers. Additionally, the planned retail expansion involves execution risks, as opening and maintaining new showrooms requires significant capital and effective demand management in new regions.
What Investors Should Track
Potential investors may want to monitor the subscription status across retail and institutional categories over the next three days. The key monitorables for the company include its ability to execute the retail expansion plan without significant cost overruns, the reduction in interest costs following the debt repayment, and the maintenance of margins despite intense sector competition. The final listing date and the actual performance on the stock exchange will provide further clarity on market sentiment toward the stock.