Advit Jewels IPO: GMP Hints at 38% Gains as Bidding Enters Final Day

Jaipur-based handcrafted jewellery brand Advit Jewels is seeing massive investor interest as its ₹165.16 crore IPO enters its final day of bidding. With a grey market premium (GMP) signaling significant listing gains, the market is closely watching this high-demand issue.

Strong Subscription Demand Driven by NIIs

The Advit Jewels IPO has witnessed overwhelming appetite from both retail and institutional investors. By the close of Day 2, the issue was subscribed a massive 44.16 times. The demand is being led by Non-Institutional Investors (NII), who have subscribed the quota 121.16 times.

Retail participation has also remained robust, with the Retail Individual Investor (RII) segment booking 35.46 times. While Qualified Institutional Buyers (QIB) showed a more moderate subscription of 1.56 times, the overall momentum suggests strong market confidence. The IPO is priced in the band of ₹130–₹138, with a minimum lot size of 100 shares requiring an investment of ₹13,800.

Grey Market Premium and Listing Expectations

Market sentiment appears highly bullish, reflected in the grey market activity. The stock is currently commanding a GMP of approximately ₹52, which represents a 38% premium over the upper price band of ₹138. If these trends persist, investors could see the shares debut on the NSE and BSE near the ₹190 mark. However, investors are cautioned that GMP is an unofficial indicator and does not guarantee actual listing performance.

Strategic Use of Funds and Business Model

Unlike many IPOs that include an Offer for Sale (OFS), this is a fresh issue of 1.20 crore equity shares, meaning all proceeds will go directly to the company. Advit Jewels plans to deploy the capital strategically:

  • ₹65 crore will be used for incremental working capital to fuel business expansion.
  • ₹65 crore is earmarked for the repayment or prepayment of existing borrowings to strengthen the balance sheet.
  • The remaining funds will be directed toward general corporate purposes.

Operating under the "Rambhajo" brand, the Jaipur-based company specializes in handcrafted fine jewellery, including Kundan, Polki, and diamond-studded pieces. The company utilizes a fully integrated 6,450 sq. ft. manufacturing facility in Jaipur, allowing for end-to-end control from gold processing to final quality inspection.

Financial Growth and Brokerage Outlook

The company has shown impressive financial momentum, reporting revenue from operations of ₹123.79 crore and a net profit of ₹25.44 crore for the nine months ended December 31, 2025.

Expert opinions are positive. SBI Securities has assigned a “Subscribe” rating, noting a P/E of 18.6x at the upper price band. The brokerage highlighted that while the company faces a heavy working capital cycle due to inventory needs, its superior operating margins and planned debt reduction via IPO proceeds should enhance future profitability. Similarly, research firm Equivision issued a “Subscribe” rating, citing the brand's solid position in the organized jewellery market.

Key Takeaways

  • High Demand: The IPO is heavily subscribed, led by a 121x subscription in the NII segment.
  • Strong Premium: A GMP of ~₹52 suggests a potential listing gain of roughly 38% at the upper price band.
  • Debt Reduction: A significant portion of the ₹165.16 crore proceeds is dedicated to reducing existing debt, which is expected to improve financial agility.