Advit Jewels IPO: Subscription Opens Tomorrow with 47% GMP

Jaipur-based handcrafted jewellery specialist Advit Jewels is set to launch its ₹165.16 crore IPO on June 23, 2026, amidst strong market enthusiasm. With a Grey Market Premium (GMP) signaling a massive potential gain, investors are closely watching this debut from the gemstone capital of India.

Strong Market Sentiment and IPO Details

The Advit Jewels public issue has generated significant buzz in the grey market, where shares are currently commanding a premium of approximately 47% over the upper price band. Based on current GMP trends, the stock is estimated to list at around ₹202 per share, significantly higher than its upper price band of ₹138.

The IPO is a fresh issue consisting of 1.20 crore equity shares, meaning there is no Offer for Sale (OFS) component, and all proceeds will go directly to the company. The subscription window will remain open from June 23 to June 25, 2026. Retail investors can participate with a minimum bid of 100 shares, requiring an investment of ₹13,800 at the upper price band.

Strategic Use of Proceeds for Growth

Advit Jewels plans to utilize the capital raised to fortify its financial foundation and fuel expansion. The company has outlined a clear three-pronged strategy for the funds:

  • Working Capital: ₹65 crore will be deployed to meet incremental working capital requirements, supporting ongoing operations and business scaling.
  • Debt Reduction: ₹65 crore is earmarked for the repayment or prepayment of existing borrowings, a move intended to lower interest costs and improve the overall balance sheet.
  • Corporate Purposes: The remaining funds will be used for general corporate activities to provide strategic financial flexibility.

Heritage Craftsmanship Meets Modern Manufacturing

Operating under the "Rambhajo" brand, Advit Jewels specializes in high-end Kundan, Polki, diamond, and gemstone jewellery. The company leverages a unique blend of traditional craftsmanship and modern technology, utilizing 3D printers and advanced casting units at its 6,450 sq. ft. integrated manufacturing facility in Jaipur.

While the company primarily follows a B2B model—supplying showrooms and retailers—it also caters to B2C customers through bespoke, made-to-order collections in 14-carat and 18-carat gold. This hybrid approach, combined with a focus on customization, has helped the firm maintain a competitive edge in the luxury segment.

Financial Performance and Brokerage Outlook

The company’s financial trajectory appears robust. For the nine-month period ending December 31, 2025, Advit Jewels reported revenue from operations of ₹123.79 crore and a net profit of ₹25.44 crore.

Reflecting this strength, SBI Securities has assigned a 'Subscribe' rating to the IPO. Although the company is valued at an annualized P/E multiple of 18.6x (based on 9MFY26 earnings), the brokerage maintains that the premium is justified by superior operating margins compared to B2B peers. Analysts noted that the planned debt repayment through IPO proceeds is expected to further enhance future earnings and profitability.

Key Takeaways

  • High Listing Expectations: With a GMP of 47%, the stock is estimated to list at ₹202, well above the ₹138 upper price band.
  • Debt and Growth Focus: Half of the ₹165.16 crore proceeds will go toward debt repayment, while the other half will bolster working capital.
  • Positive Brokerage View: SBI Securities recommends 'Subscribe,' citing strong operating margins and a high-growth profile.