Whalesbook
Advit Jewels, a Jaipur-based jewellery manufacturer, is set to launch its ₹165 crore IPO on June 23. The company focuses on handcrafted designs with a significant B2B presence. Investors are looking at its recent revenue growth, while risks regarding gold price volatility and client concentration in the B2B segment remain key factors to watch.
What Happened
Advit Jewels Ltd, a jewellery company based in Jaipur, has announced the details of its Initial Public Offering (IPO). The public issue will open for subscription on June 23, 2026, and close on June 25, 2026. The company has set a price band of ₹130 to ₹138 per share. The IPO aims to raise approximately ₹165 crore through a fresh issue of 1.19 crore equity shares.
Investors can bid for a minimum lot size of 100 shares. The funds raised will be used primarily for two purposes: ₹65 crore will go toward meeting incremental working capital needs, and another ₹65 crore will be used to repay or prepay existing debt. The remaining portion of the funds is reserved for general corporate purposes.
Why This Matters For Investors
The company operates primarily through a business-to-business (B2B) model, which contributed over 81% of its revenue in FY25. This means a large part of its income comes from selling jewellery to other retailers rather than directly to consumers. The shift to reduce debt using IPO proceeds is a notable step, as it may lower interest costs and improve the company's financial health.
Investors are also evaluating the company’s strong revenue growth. For the year ended March 2025 (FY25), the company reported a total income of ₹124.94 crore, compared to ₹69.45 crore in FY24. Profit after tax also saw a significant increase during the same period, rising from ₹14.71 crore to ₹25.37 crore. For the nine months ended December 2025, the company reported a net profit of ₹25.44 crore, suggesting sustained momentum.
Business Model and Operations
Advit Jewels creates handcrafted jewellery under the "Rambhajo" brand, including products like Kundan, Polki, and diamond-studded pieces. While the B2B segment is the primary revenue driver, the company is also growing its business-to-consumer (B2C) segment, which contributed about 18% of revenue in FY25. The company maintains an in-house manufacturing unit in Jaipur, which it uses to manage quality and production efficiency.
The Gold and Working Capital Risk
Investing in jewellery companies carries specific sector-related risks. The primary risk is gold price volatility. Because jewellery makers hold significant amounts of gold inventory, fluctuations in the price of the metal can impact profit margins. Furthermore, the jewellery business is highly capital-intensive.
Companies in this space often need to maintain high working capital, meaning a significant amount of cash is tied up in inventory and receivables. While the IPO proceeds will help manage working capital needs, the company’s ability to manage this cash flow effectively as it grows will be an important factor for long-term sustainability.
How Investors May Read This
Market sentiment often reflects in the grey market, which is a speculative, unofficial platform where shares trade before the listing. While reports of a premium exist, investors should remember that grey market premiums are highly volatile and do not guarantee listing day performance. The real value for shareholders lies in the company's ability to maintain its profit margins and grow its B2C brand over the coming years.
What Investors Should Track
Moving forward, the primary monitorables include the company’s ability to reduce its debt burden as planned and its success in managing raw material costs. Investors should also watch the expansion of the B2C segment, as this could offer higher profit margins compared to the B2B business. Finally, tracking the actual utilization of the IPO funds toward working capital and debt repayment will show if management is successfully executing its stated strategy.