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 a Grey Market Premium (GMP) signaling robust investor enthusiasm, the market is closely watching this debut from the renowned gemstone hub of Rajasthan.

Strong Market Sentiment and Subscription Details

The Advit Jewels IPO 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, a substantial jump from its upper price band of ₹138.

The issue is a completely fresh issue comprising 1.20 crore equity shares, totaling ₹165.16 crore, with no portion allocated to an Offer for Sale (OFS). 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 Funds: Growth and Debt Reduction

Advit Jewels has outlined a clear roadmap for the capital raised through this public issue. The company intends to bolster its balance sheet and fuel expansion through three primary channels:

  • Working Capital: ₹65 crore will be deployed to meet incremental working capital requirements, supporting ongoing operations and business scaling.
  • Debt Repayment: ₹65 crore is earmarked for the repayment or prepayment of existing borrowings, a move designed to reduce interest costs and improve overall financial health.
  • Corporate Purposes: The remaining proceeds will be utilized for general corporate objectives to provide greater financial flexibility.

Business Model and Financial Performance

Operating under the "Rambhajo" brand, Advit Jewels specializes in premium handcrafted jewellery, including Kundan, Polki, and diamond-studded pieces in 14-carat and 18-carat gold. The company utilizes a hybrid model, primarily functioning as a B2B supplier to dealers and showrooms, while also offering bespoke B2C services.

The company's financial trajectory appears promising. 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. This reflects a strong ability to convert revenue into healthy earnings.

Brokerage Outlook: Why SBI Securities Recommends 'Subscribe'

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

The brokerage further noted that the planned debt reduction via IPO proceeds is expected to enhance future profitability. Despite the inherent challenges of a long working capital cycle due to high inventory needs, Advit Jewels has demonstrated increasing financial discipline through positive operating cash flows.

Key Takeaways

  • High Investor Interest: The IPO is trading at a 47% Grey Market Premium, with an estimated listing price of ₹202 against an upper price band of ₹138.
  • Debt and Growth Focus: The company plans to split its ₹165.16 crore proceeds equally between working capital needs (₹65 crore) and debt repayment (₹65 crore).
  • Strong Financials: Advit Jewels reported a net profit of ₹25.44 crore on revenues of ₹123.79 crore for the nine months ended December 2025.