Advit Jewels IPO: Strong GMP of 47% as Subscription Opens Tomorrow

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) indicating a potential 47% listing gain, the market is showing significant enthusiasm for this fine jewellery player.

IPO Details and Subscription Timeline

The Advit Jewels IPO is a completely fresh issue consisting of 1.20 crore equity shares, meaning there is no Offer for Sale (OFS) component. The company has established a price band of ₹130 to ₹138 per share.

Investors can participate in the bidding process from June 23 to June 25, 2026. For retail investors, the minimum lot size is 100 shares, requiring an investment of ₹13,800 at the upper price band. If current grey market trends hold, the stock could list at approximately ₹202, significantly up from its issue price of ₹138. Share allotment is expected by June 29, with a planned debut on the NSE and BSE on July 1, 2026.

Strategic Use of Funds: Debt Reduction and Growth

The company has a clear roadmap for the ₹165.16 crore raised through this issue. The proceeds are earmarked for three primary objectives:

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

Brand Heritage and Robust Financials

Operating under the "Rambhajo" brand, Advit Jewels leverages Jaipur's reputation as a global gemstone hub. The company specializes in Kundan, Polki, and diamond-studded jewellery, catering to both B2B clients (dealers and showrooms) and B2C customers through bespoke orders. Their integrated 6,450 sq. ft. manufacturing facility utilizes modern 3D printing and casting technologies alongside traditional artisanal craftsmanship.

The company's financial trajectory remains upward. 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, demonstrating strong margin management and profitability.

Brokerage View: SBI Securities Recommends 'Subscribe'

SBI Securities has issued a 'Subscribe' rating for the IPO. While acknowledging that the valuation—an annualized P/E multiple of 18.6x based on 9MFY26 earnings—is higher than some industry peers, the brokerage believes the premium is justified by the company's superior growth profile.

The analysts highlighted that Advit Jewels maintains stronger operating margins than many of its B2B competitors. Furthermore, the planned use of IPO proceeds to reduce debt is expected to significantly enhance earnings and financial discipline in the coming years.

Key Takeaways

  • High Investor Interest: The IPO is commanding a Grey Market Premium (GMP) of approximately 47%, suggesting a strong listing appetite.
  • Balanced Fund Allocation: Half of the proceeds (₹65 crore) will go toward debt repayment, while the other half (₹65 crore) will bolster working capital.
  • Positive Analyst Outlook: SBI Securities recommends 'Subscribe,' citing superior operating margins and a strong growth trajectory despite a premium valuation.