Advit Jewels IPO to Open Tomorrow: GMP at 47%; SBI Securities Recommends 'Subscribe'

Jaipur-based handcrafted jewellery specialist Advit Jewels is set to launch its ₹165.16 crore Initial Public Offering (IPO) on June 23, 2026. With strong grey market signals and a "Subscribe" rating from leading brokerages, the market is closely watching this premium jewellery player.

Strong Grey Market Sentiment and IPO Details

The Advit Jewels IPO is generating significant buzz in the grey market, with a Grey Market Premium (GMP) of approximately 47%. Based on current trends, the stock is estimated to list at around ₹202 per share, a substantial jump from the upper price band of ₹138.

The issue is a fresh issue consisting of 1.20 crore equity shares, totaling ₹165.16 crore. Notably, there is no Offer for Sale (OFS) component, meaning all proceeds will go directly to the company. The IPO is scheduled to open for bidding on June 23, 2026, and will close on June 25, 2026. Retail investors can participate with a minimum investment of ₹13,800 (100 shares at the upper price band).

Strategic Use of Funds: Debt Reduction and Growth

The company has outlined a clear roadmap for the capital raised through the public issue. The funds are earmarked for three primary objectives:

  • Working Capital: ₹65 crore will be deployed to meet incremental working capital requirements to support business expansion and daily operations.
  • Debt Repayment: ₹65 crore will be used to repay or prepay existing borrowings, a move intended to strengthen the balance sheet and improve long-term profitability.
  • General Corporate Purposes: The remaining proceeds will provide financial flexibility for strategic and operational goals.

Heritage Craftsmanship and Financial Performance

Operating under the 'Rambhajo' brand, Advit Jewels leverages its location in Jaipur to specialize in Kundan, Polki, diamond, and gemstone jewellery. The company utilizes a fully integrated 6,450 sq. ft. manufacturing facility equipped with 3D printing and advanced casting technology, allowing for high-quality bespoke creations in 14-carat and 18-carat gold.

Financially, the company has demonstrated robust growth. 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, showcasing its ability to maintain healthy margins while scaling.

Brokerage View: Why SBI Securities Recommends 'Subscribe'

SBI Securities has assigned a 'Subscribe' rating to the IPO. While the company is valued at an annualized P/E multiple of 18.6x (based on 9MFY26 earnings), the brokerage maintains that this premium is justified by its superior growth profile.

Key reasons for the positive outlook include:

  • Superior Margins: The company enjoys stronger operating margins compared to many of its B2B peers.
  • Financial Discipline: Despite a longer working capital cycle due to high inventory, the company has shown improved discipline through positive operating cash flows.
  • Deleveraging: The planned repayment of debt using IPO proceeds is expected to further enhance future earnings per share (EPS).

Key Takeaways

  • High Market Interest: The IPO is trading at a ~47% GMP, suggesting a potential listing at ₹202 against an upper price band of ₹138.
  • Financial Strengthening: Half of the ₹165.16 crore proceeds will be used specifically to reduce debt, which is expected to boost future profitability.
  • Strong Fundamentals: With a net profit of ₹25.44 crore in the last nine months, the company shows a strong ability to convert revenue into earnings.