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

Jaipur-based handcrafted jewellery brand Advit Jewels has seen massive investor interest as its IPO enters its second day of bidding. With a Grey Market Premium (GMP) signaling significant listing gains, the market is closely watching this heritage brand's debut on the NSE and BSE.

The Rs 165.16 crore IPO has demonstrated robust demand right from the opening bell. By the end of Day 1, the issue was subscribed 11.18x against the total offer of 83.79 lakh shares. The demand is being driven heavily by retail and non-institutional investors.

Specifically, the Retail Individual Investors (RII) category saw a subscription of 11.55x, while the Non-Institutional Investors (NII) segment witnessed an even more aggressive 23.73x subscription. In contrast, Qualified Institutional Buyers (QIB) showed a more measured response, subscribing 1.11x.

Current grey market activity suggests high expectations for the listing. The IPO is commanding a GMP of approximately 41%. Based on the upper price band of Rs 138 per share, this translates to an estimated listing price of roughly Rs 194. However, investors should remember that GMP is an unofficial indicator and not a guaranteed return.

Strategic Deployment of IPO Proceeds

Unlike many IPOs that include an Offer for Sale (OFS), Advit Jewels’ issue is a 100% fresh issue of 1.20 crore equity shares. This means the entire capital raised will be infused directly into the company to fuel growth. The company has outlined a clear three-pronged strategy for the funds:

  • Working Capital: Rs 65 crore will be allocated to incremental working capital to support day-to-day operations and business expansion.
  • Debt Reduction: Rs 65 crore is earmarked for the repayment or prepayment of existing borrowings, a move expected to strengthen the balance sheet.
  • Corporate Purposes: The remaining funds will be used for general corporate purposes to provide strategic flexibility.

Business Profile and Financial Health

Operating under the "Rambhajo" brand, Advit Jewels leverages Jaipur's status as a global gemstone hub. The company specializes in high-end, handcrafted jewellery, including Kundan, Polki, and diamond-studded pieces in 14-carat and 18-carat gold. Their vertically integrated model features a 6,450 sq. ft. manufacturing facility that handles everything from 3D printing to final polishing in-house.

Financially, the company shows a strong growth trajectory. For the nine-month period ending December 31, 2025, Advit Jewels reported revenue from operations of Rs 123.79 crore and a net profit of Rs 25.44 crore.

Expert Brokerage Outlook

Market analysts appear optimistic about the offering. SBI Securities has assigned a “Subscribe” rating to the IPO, 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 profitability and operating margins. Analysts suggest that the planned debt repayment will likely enhance future earnings and return ratios.

Key Takeaways

  • High Demand: The IPO saw strong Day 1 interest, led by NIIs (23.73x) and Retail investors (11.55x).
  • Growth-Oriented Capital: The entire Rs 165.16 crore fresh issue will be used for working capital and debt reduction.
  • Positive Market Sentiment: A 41% GMP suggests strong listing-day expectations, backed by a "Subscribe" rating from major brokerages.