Advit Jewels IPO: 38% GMP Hints at Strong Listing Gains; Should You Subscribe?

Jaipur-based handcrafted jewellery brand Advit Jewels is currently in its final day of bidding, attracting significant attention from both retail and institutional investors. With a Grey Market Premium (GMP) signaling substantial listing gains, the market is closely watching this ₹165.16 crore public issue.

Strong Subscription Momentum and Grey Market Buzz

The Advit Jewels IPO has witnessed overwhelming demand throughout its bidding period. By the close of Day 2, the issue was subscribed a massive 44.16 times. The driving force behind this surge has been the Non-Institutional Investors (NII) segment, which saw a staggering 121.16-fold subscription. Retail Individual Investors (RII) have also shown high conviction, with the retail quota booked 35.46 times.

Market sentiment remains bullish as evidenced by the Grey Market Premium (GMP). The stock is currently trading at a GMP of approximately ₹52, which is roughly 38% above the upper price band of ₹138. If these trends persist, investors could see the shares debut near the ₹190 mark on the NSE and BSE.

Strategic Use of Proceeds and Business Model

Unlike many IPOs that include an Offer for Sale (OFS), this is a fresh issue of 1.20 crore equity shares. This ensures that the entire ₹165.16 crore raised will go directly to the company to strengthen its balance sheet. Advit Jewels has outlined a clear roadmap for these funds:

  • Working Capital: ₹65 crore will be allocated to meet incremental working capital requirements to fuel business expansion.
  • Debt Reduction: ₹65 crore is earmarked for the repayment or prepayment of existing borrowings, a move expected to enhance profitability and financial agility.
  • General Corporate Purposes: The remaining funds will provide flexibility for strategic operational priorities.

Operating under the "Rambhajo" brand, the Jaipur-based company specializes in high-end handcrafted jewellery, including Kundan, Polki, and diamond-studded pieces. Their integrated 6,450 sq. ft. manufacturing facility allows them to manage the entire production process in-house, from 3D printing to final polishing.

Financial Health and Expert Ratings

Advit Jewels has demonstrated robust financial momentum. For the nine months ended December 31, 2025, the company reported revenue from operations of ₹123.79 crore and a net profit of ₹25.44 crore. This indicates strong operational scale and healthy margins.

Financial experts have responded positively to the issue. SBI Securities has assigned a “Subscribe” rating, noting that while the P/E ratio of 18.6x (based on annualized 9MFY26 earnings) is slightly above some peers, it is justified by the company's superior profitability and growth trajectory. Similarly, research firm Equivision has issued a “Subscribe” rating, citing the company's solid position in the organized jewellery market.

Key Takeaways

  • High Demand: The IPO has seen massive interest, particularly from NIIs (121.16x subscription) and retail investors (35.46x subscription).
  • Potential Gains: A current GMP of ~38% suggests a strong listing-day performance, potentially near ₹190.
  • Debt Management: A significant portion of the proceeds (₹65 crore) is dedicated to debt repayment, which is expected to improve future return ratios and earnings.