Advit Jewels IPO: Strong Grey Market Demand as SBI Securities Recommends ‘Subscribe’
Jaipur-based handcrafted jewellery specialist Advit Jewels is set to launch its ₹165.16 crore IPO on June 23, 2026, amid significant investor enthusiasm. With a Grey Market Premium (GMP) hovering around 47%, the market is signaling robust confidence in the heritage brand's growth trajectory.
IPO Details and Subscription Timeline
The Advit Jewels public issue is a fresh issue consisting of 1.20 crore equity shares, with no portion reserved for an Offer for Sale (OFS). The company has fixed 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. Following the subscription period, share allotment is expected by June 29, with the company’s debut on the NSE and BSE scheduled for July 1, 2026.
Strategic Use of Proceeds: Debt Reduction and Growth
The company has a clear roadmap for the capital raised through the ₹165.16 crore issue. A significant portion of the funds will be used to fortify the company’s financial health and fuel expansion:
- Working Capital: ₹65 crore will be deployed to meet incremental working capital requirements to support ongoing operations.
- Debt Repayment: ₹65 crore is earmarked for the repayment or prepayment of existing borrowings, a move intended to reduce interest burdens and improve overall profitability.
- Corporate Purposes: The remaining funds will be utilized for general corporate objectives, providing the firm with enhanced financial flexibility.
Brand Heritage and Manufacturing Prowess
Operating under the "Rambhajo" brand, Advit Jewels leverages Jaipur's reputation as a global gemstone hub. The company specializes in high-end, handcrafted pieces including Kundan, Polki, and diamond-studded jewellery in 14-carat and 18-carat gold.
Unlike many players in the segment, Advit Jewels operates a fully integrated 6,450 sq. ft. manufacturing facility in Jaipur. This facility utilizes modern technology, including 3D printers and casting units, while employing skilled artisans to manage the entire production lifecycle—from gold processing to final quality inspection. This integration supports their primary B2B model while catering to bespoke B2C requirements.
Financial Performance and Brokerage Outlook
Advit Jewels has demonstrated impressive financial momentum. For the nine-month period ending December 31, 2025, the company reported revenues of ₹123.79 crore and a net profit of ₹25.44 crore.
SBI Securities has issued a 'Subscribe' rating for the IPO. While noting an annualized P/E multiple of 18.6x at the upper price band—which may appear premium compared to some peers—the brokerage maintains that the valuation is justified by superior operating margins and a strong growth profile. SBI Securities further highlighted that the planned debt reduction via IPO proceeds is expected to significantly enhance future earnings.
Key Takeaways
- Strong Market Sentiment: The stock is commanding a Grey Market Premium (GMP) of approximately 47%, with an estimated listing price of ₹202 against the ₹138 issue price.
- Balanced Fund Allocation: The company plans to split its proceeds equally between strengthening working capital (₹65 crore) and reducing debt (₹65 crore).
- Robust Financials: The firm reported a healthy net profit of ₹25.44 crore for the nine months ended December 2025, supported by its integrated manufacturing model.