Advit Jewels IPO: Subscription Opens Tomorrow with 47% GMP Premium
Jaipur-based handcrafted jewellery specialist Advit Jewels is set to launch its ₹165.16 crore Initial Public Offering (IPO) on June 23, 2026. With a Grey Market Premium (GMP) signaling a potential 47% listing gain, the issue is attracting significant attention from both retail and institutional investors.
IPO Details and Subscription Timeline
The Advit Jewels IPO 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 established a price band of ₹130 to ₹138 per share.
Investors can participate in the bidding process from June 23, 2026, until the window 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. The share allotment is expected to be finalized by June 29, with the official listing on the NSE and BSE scheduled for July 1, 2026.
Strategic Use of Proceeds: Debt Reduction and Growth
The company has outlined a clear roadmap for the ₹165.16 crore raised through the IPO. The funds are earmarked for three primary pillars:
- Working Capital: ₹65 crore will be deployed to meet incremental working capital requirements to support business expansion.
- Debt Repayment: Another ₹65 crore will be used to repay or prepay existing borrowings, a move intended to strengthen the balance sheet and improve overall profitability.
- Corporate Purposes: The remaining funds will be utilized for general corporate objectives and strategic flexibility.
Business Model: The 'Rambhajo' Brand Legacy
Headquartered in the gemstone hub of Jaipur, Advit Jewels operates under the "Rambhajo" brand, specializing in high-end handcrafted pieces including Kundan, Polki, and diamond-studded jewellery. The company utilizes a hybrid model, primarily operating in the B2B segment by supplying dealers and showrooms, while also catering to B2C customers through bespoke, made-to-order collections.
The company maintains a fully integrated 6,450 sq. ft. manufacturing facility in Jaipur. By utilizing modern technologies like 3D printers alongside traditional artisan craftsmanship, they manage the entire production lifecycle—from gold processing to final quality inspection—under one roof.
Financial Performance and Brokerage Outlook
Advit Jewels has demonstrated robust financial health. 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' recommendation for the IPO. While noting that the annualized P/E multiple of 18.6x (based on upper price band earnings) is higher than some peers, the brokerage believes the premium is justified by the company's superior growth profile and stronger operating margins. Furthermore, the planned debt reduction via IPO proceeds is expected to significantly enhance future 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 against the ₹138 issue price.
- Financial Strengthening: A major portion of the ₹165.16 crore proceeds will go toward debt repayment (₹65 crore) and working capital (₹65 crore).
- Growth Driven Model: With a focus on the premium handcrafted segment and a strong B2B presence, the company shows healthy profitability with a net profit of ₹25.44 crore in the last reported nine-month period.