Advit Jewels IPO Day 2: GMP Signals 41% Listing Gains; Should You Subscribe?

Jaipur-based handcrafted jewellery specialist Advit Jewels has seen a massive surge in investor interest as its IPO enters its second day of bidding. With a significant grey market premium and strong subscription numbers from both retail and non-institutional investors, the market is eyeing a potentially lucrative listing.

The Advit Jewels IPO is currently commanding a Grey Market Premium (GMP) of approximately 41%. Based on the upper price band of ₹138 per share, this translates to an estimated listing price of roughly ₹194, signaling robust sentiment among market participants.

On Day 1, the ₹165.16 crore issue saw an overall subscription of 11.18x against the 83.79 lakh shares offered. The demand was driven heavily by individual and high-net-worth investors:

  • Retail Individual Investors (RII): Subscribed 11.55x.
  • Non-Institutional Investors (NII): Saw the highest enthusiasm, subscribed 23.73x.
  • Qualified Institutional Buyers (QIB): Witnessed a more conservative response, subscribed 1.11x.

The IPO is a fresh issue of 1.20 crore equity shares with no Offer for Sale (OFS) component, meaning all proceeds will go directly to the company.

Strategic Deployment of IPO Proceeds

Advit Jewels has a clear roadmap for the capital raised through this ₹165.16 crore issue. The company intends to use the funds to fortify its balance sheet and fuel operational scaling:

  • Working Capital: ₹65 crore will be allocated to manage incremental working capital requirements, essential for a high-inventory business.
  • Debt Reduction: ₹65 crore is earmarked for the repayment or prepayment of existing borrowings, a move expected to lower interest costs and improve profitability.
  • General Corporate Purposes: The remaining funds will support strategic priorities and operational flexibility.

Business Profile and Financial Performance

Operating under the "Rambhajo" brand, Advit Jewels leverages Jaipur's heritage in gemstones and fine jewellery. The company specializes in handcrafted Kundan, Polki, and diamond-studded pieces using 14-carat and 18-carat gold. Their integrated 6,450 sq. ft. manufacturing facility in Jaipur allows for end-to-end production, from 3D printing to final polishing.

Financially, the company shows a strong growth trajectory. 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 healthy margins in the competitive B2B and B2C jewellery segments.

Expert Brokerage Outlook

Market analysts appear optimistic about the offering. SBI Securities has assigned a “Subscribe” rating, noting that while the P/E ratio of 18.6x (at the upper price band) is slightly higher than some peers, it is justified by the company’s superior operating margins and growth potential. Analysts believe the planned debt repayment will significantly enhance future earnings and return ratios.

Key Takeaways

  • Strong Market Sentiment: A 41% GMP suggests investors are expecting a significant premium upon listing on the NSE and BSE.
  • Growth-Focused Capital Use: The majority of the proceeds are dedicated to working capital and debt reduction, which could improve long-term financial agility.
  • Robust Subscription: High demand from NII and Retail segments indicates strong confidence in the Jaipur-based brand's market position.