Hyderabad-based Deepa Jewellers has raised ₹137.91 crore from 14 institutional investors as part of its ₹459.72 crore initial public offering. With shares allocated at the upper end of the price band, the company is set to open for public subscription on September 1, 2026.
Deepa Jewellers has successfully completed its anchor book round, securing ₹137.91 crore from 14 institutional investors ahead of its main public issue. The company allocated shares at the upper end of its price band, which is set between ₹168 and ₹177 per share. This move marks the final phase before the company’s total ₹459.72 crore initial public offering (IPO) opens for general subscription on September 1, 2026.
Institutional Participation and IPO Structure
The anchor round saw participation from major domestic and global institutional players. Motilal Oswal Finvest led the investment, acquiring shares worth approximately ₹35.95 crore. Other notable participants included WhiteOak Capital, Tata Mutual Fund, Nomura Singapore, and Citi Group Global Markets Mauritius. The IPO consists of a fresh issue of shares worth ₹250 crore, with the remainder coming from an offer-for-sale (OFS) where promoters Ashish and Seema Agarwal are selling up to 1.18 crore equity shares.
Management has stated that the primary goal for the ₹250 crore fresh issue is to fund the company’s working capital requirements. In the jewellery retail business, cash flow is heavily tied up in inventory, such as gold and diamond stocks, making consistent access to working capital essential for daily operations and expansion.
Financial and Operational Context
For the financial year 2026, Deepa Jewellers reported revenue of ₹1,927.73 crore with a profit after tax of ₹104.79 crore. The company maintains an EBITDA margin of 7.60%. While these figures reflect the company's scale, the jewellery retail sector is traditionally a low-margin business where profitability is highly sensitive to the cost of raw materials—specifically gold and diamonds—and the ability to manage inventory efficiently.
Risk Factors to Consider
Investors evaluating the offer may want to look at specific concentration risks. The company’s business is heavily focused on Southern India, with a significant portion of its revenue derived from states like Telangana, Andhra Pradesh, and Tamil Nadu. Any slowdown or regulatory change in these specific regions could impact the company more than a geographically diverse competitor.
Additionally, the company relies significantly on third-party 'karigars' (skilled craftsmen) for manufacturing. This model helps in keeping overheads lower compared to owning large-scale factories, but it also means the company is dependent on external labour for the quality and timing of its product supply. Customer concentration is another factor, as the top 10 customers have historically contributed a significant portion of the company’s revenue.
What Happens Next
The public subscription window for the IPO opens on September 1 and will remain open until September 3, 2026. The listing is tentatively scheduled for September 8, 2026, on the BSE and the NSE. Post-IPO, the primary monitorable for shareholders will be the management’s ability to deploy the fresh capital to optimize inventory cycles and whether they can successfully scale their presence beyond their current strongholds in South India.