Advit Jewels IPO: Subscription Opens Tomorrow with 47% GMP Premium

Jaipur-based handcrafted jewellery maker Advit Jewels is set to launch its ₹165.16 crore IPO on June 23, 2026, amidst significant market enthusiasm. With a Grey Market Premium (GMP) hovering around 47%, investors are eyeing a potential listing gain as the company seeks to scale its heritage brand, Rambhajo.

IPO Details and Subscription Timeline

The Advit Jewels public issue is a completely fresh issue consisting of 1.20 crore equity shares, with no portion allocated to an Offer-for-Sale (OFS). The company has fixed the price band at ₹130 to ₹138 per share.

Investors can participate in the bidding process from June 23, 2026, until the issue closes on June 25, 2026. For retail investors, the minimum lot size is 100 shares, requiring an investment of ₹13,800 at the upper price band. Share allotment is expected by June 29, with the official listing on the NSE and BSE slated for July 1, 2026.

Strategic Use of Proceeds: Debt Reduction and Growth

The company intends to utilize the ₹165.16 crore raised to strengthen its balance sheet and fuel expansion. The fund allocation is strategically divided into three main pillars:

  • Working Capital: ₹65 crore will be deployed to meet incremental working capital requirements to support ongoing operations.
  • Debt Repayment: ₹65 crore is earmarked for the repayment or prepayment of existing borrowings, a move designed to reduce interest costs and enhance financial flexibility.
  • General Corporate Purposes: The remaining funds will be used for strategic operational objectives.

Heritage Craftsmanship Meets Modern Manufacturing

Headquartered in the jewellery hub of Jaipur, Advit Jewels operates under the "Rambhajo" brand, specializing in Kundan, Polki, and diamond-studded jewellery. The company employs a hybrid business model, primarily operating in the B2B segment by supplying dealers and showrooms, while also offering bespoke B2C services.

A key competitive advantage is its fully integrated 6,450 sq. ft. manufacturing facility in Jaipur. By utilizing advanced technologies like 3D printers and casting units alongside skilled manual craftsmanship, the company maintains complete control over the production cycle—from gold processing to final quality inspection.

Financial Performance and Brokerage Outlook

Advit Jewels has demonstrated robust financial momentum. For the nine-month period ending December 31, 2025, the company reported revenue from operations of ₹123.79 crore and a net profit of ₹25.44 crore.

SBI Securities has issued a ‘Subscribe’ rating for the IPO. While noting that the company’s valuation stands at an annualized P/E multiple of 18.6x (based on 9MFY26 earnings), the brokerage argues that the premium is justified by superior operating margins compared to B2B peers. Furthermore, SBI Securities highlighted that the planned debt repayment via IPO proceeds is expected to significantly boost future profitability and earnings.

Key Takeaways

  • Strong Market Sentiment: The IPO is trading at a Grey Market Premium (GMP) of approximately 47%, suggesting an estimated listing price of ₹202 per share.
  • Balanced Fund Allocation: Half of the proceeds (₹65 crore) will go toward debt repayment, while the other half (₹65 crore) will support working capital needs.
  • Solid Fundamentals: The company reported a net profit of ₹25.44 crore for the nine months ended December 2025, backed by a specialized integrated manufacturing setup.