Jaipur-based Advit Jewels is launching its ₹165.16 crore IPO on June 23, with a price band of ₹130-138. The fresh issue is focused on funding working capital and repaying debt. With early grey market activity suggesting strong interest, investors are comparing the company’s rapid financial growth against the working capital-heavy nature of the jewellery business.
What Happened
Advit Jewels, a jewellery manufacturer based in Jaipur, is set to open its Initial Public Offering (IPO) on Tuesday, June 23, 2026. The company is aiming to raise ₹165.16 crore through a fresh issue of 12 million shares. The subscription period will run until Thursday, June 25, 2026. The company has fixed the price band between ₹130 and ₹138 per share. Investors must bid for a minimum of 100 shares, meaning a minimum investment of ₹13,800 for one lot.
The Growth And Valuation Picture
The company has reported rapid growth between the financial years 2023 and 2025. Data indicates that the company achieved a compound annual growth rate (CAGR) of 63.7% in revenue and 56.2% in profit after tax (PAT) during this period. Based on the price band, the company is valued at roughly 17 times its earnings for the fiscal year 2025. Brokerage firms such as SMIFS and Marwadi Financial Services have highlighted this growth trend and the company’s integrated manufacturing model as key strengths. The valuation is often compared by market observers with other listed jewellery players like RBZ Jewellers, Radhika Jeweltech, and Bluestone Jewellery.
How Investors May Read This
Unlike many IPOs that include an 'Offer For Sale' (where existing investors sell shares to exit), this issue is entirely a fresh sale of shares. This means all the money raised will go into the company's business rather than to the current owners. This is generally viewed as a positive sign for long-term capital allocation. While early unofficial market sentiment, known as the grey market premium (GMP), is hovering around 45.65%, investors should remember that this is speculative and does not guarantee the actual listing performance. It mainly reflects the current demand trend in the unlisted market.
Usage Of Funds And Risks
The company plans to use the money raised to meet its working capital requirements and repay certain borrowings. The jewellery sector is historically known for being capital-intensive. Retailers often need to hold large amounts of inventory, which requires significant upfront cash. Investors should be aware that the company’s business model depends on managing this inventory cycle efficiently. If working capital cycles extend or if raw material costs fluctuate significantly, the profit margins could face pressure. Furthermore, as the company expands its footprint with a new flagship store in Jaipur and shifts toward B2C sales, the ability to manage operational costs will be crucial.
What To Track Next
The primary monitorables for investors after the IPO are the actual deployment of funds for business growth and the company's ability to maintain its recent profit growth rates. Investors will watch whether the expansion into B2C (selling directly to customers) and the franchise-led model effectively boost margins or if competition from established jewellery brands impacts pricing power. The listing is scheduled for Wednesday, July 1, 2026.