The Deepa Jewellers initial public offering opened for subscription on September 1, 2026, aiming to raise ₹459.72 crore. Retail investors showed initial interest as the issue reached approximately 20 percent subscription on day one. The company, a supplier of hallmarked gold, plans to use the fresh funds to manage its inventory needs and working capital.
Deepa Jewellers, a supplier of hallmarked gold jewellery, officially opened its initial public offering on September 1, 2026. The company has set a price band of ₹168 to ₹177 per share for the ₹459.72 crore issue. The offering consists of a fresh issue of shares worth ₹250 crore and an offer for sale by existing shareholders worth ₹209.72 crore.
By midday on the first day of bidding, the IPO recorded a subscription rate of approximately 20 percent. Investors are required to bid in lots of 84 shares, which means a minimum application amount of ₹14,868 at the upper price band.
Institutional Interest
Before opening to the public, the company secured ₹137.91 crore from anchor investors. This portion of the offering attracted interest from notable names, including Nomura Singapore, Ashoka India Equity Investment Trust, and Citigroup. On the domestic front, Tata Asset Management Company, WhiteOak Capital, and 360 ONE also secured allocations, with Motilal Oswal Finvest leading the anchor round.
Financials and Growth Strategy
Deepa Jewellers reported revenue of ₹1,927.73 crore and a net profit of ₹104.79 crore for FY26. The primary motivation behind the fresh issue is to boost the company’s working capital. Because the business model involves holding significant amounts of gold inventory, the company requires constant access to cash for procurement and operations. By raising ₹250 crore, the management aims to support this inventory-heavy supply chain.
Key Risks to Consider
Investors looking at this offering may want to consider several specific business risks. First, the company relies heavily on a limited number of clients. Data indicates that its top 10 customers contributed over 63 percent of its revenue in the recent financial year. If any of these large relationships were to weaken, it could impact the company’s revenue.
Second, there is a geographical concentration risk. The business is heavily focused on Southern India, specifically states like Telangana, Andhra Pradesh, Tamil Nadu, Karnataka, and Kerala. Any regulatory changes or shifts in demand patterns in this specific region could influence the company’s performance.
Finally, the business model relies on third-party artisans, known as karigars, for manufacturing. While this allows for scale, it means the company does not have full control over the entire production process. Additionally, the company remains sensitive to fluctuations in gold and diamond prices, which is a common risk for players in the jewellery supply sector.
The IPO will remain open for bidding until September 3, 2026. Following the close of the issue, the company will finalize the allotment process before the stock lists on the BSE and NSE on September 8, 2026.