Advit Jewels IPO: Subscription Opens Tomorrow; GMP Hits 47%

Jaipur-based handcrafted jewellery maker 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 major brokerages, the issue is generating significant buzz among retail and institutional investors alike.

IPO Details and Strong Grey Market Interest

The Advit Jewels IPO is a fresh issue comprising 1.20 crore equity shares, with no allocation through the Offer-for-Sale (OFS) route. The company has fixed a price band of ₹130 to ₹138 per share. For retail investors, the minimum lot size is 100 shares, requiring an investment of ₹13,800 at the upper price band.

Investor sentiment appears highly bullish, as evidenced by the Grey Market Premium (GMP). Currently, the stock is commanding a premium of approximately 47%, with an estimated listing price of ₹202 per share against the upper issue price of ₹138. The subscription window will remain open from June 23 to June 25, 2026, with the stock expected to debut on the NSE and BSE on July 1, 2026.

Strategic Use of Funds and Financial Roadmap

The company intends to utilize the ₹165.16 crore proceeds to strengthen its balance sheet and fuel expansion. The allocation strategy is clearly defined:

  • Working Capital: ₹65 crore will be deployed to meet incremental working capital requirements to support ongoing operations.
  • Debt Reduction: ₹65 crore is earmarked for the repayment or prepayment of existing borrowings, a move expected to lower interest costs and improve profitability.
  • Corporate Purposes: The remaining funds will be used for general corporate objectives to provide financial flexibility.

Heritage Craftsmanship and Business Model

Operating under the "Rambhajo" brand, Advit Jewels leverages Jaipur's reputation as a global gemstone hub. The company specializes in a blend of traditional and contemporary fine jewellery, including Kundan, Polki, and diamond-studded pieces crafted in 14-carat and 18-carat gold.

The company follows a primarily B2B model, supplying dealers and showrooms, while also catering to B2C customers through bespoke, made-to-order collections. Their fully integrated 6,450 sq. ft. manufacturing facility in Jaipur utilizes modern technologies like 3D printers alongside skilled artisanal craftsmanship to maintain end-to-end quality control.

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 recommended a 'Subscribe' rating for the IPO. While noting an annualized P/E multiple of 18.6x at the upper price band, the brokerage believes the valuation is justified by the company's superior growth profile and operating margins compared to B2B jewellery peers. Analysts also highlighted that the planned debt repayment will likely enhance future earnings and financial discipline.

Key Takeaways

  • Strong Market Sentiment: The IPO is trading at a 47% GMP, indicating a potential listing at ₹202 per share.
  • Debt & Growth Focus: ₹130 crore of the total proceeds will be split equally between boosting working capital and reducing existing debt.
  • Solid Profitability: The company reported a healthy net profit of ₹25.44 crore for the nine months ending December 2025.