Advit Jewels IPO: Strong GMP of 47% as Subscription Opens Tomorrow

Jaipur-based handcrafted jewellery specialist Advit Jewels is set to launch its ₹165.16 crore IPO on June 23, 2026, attracting significant investor interest. With a Grey Market Premium (GMP) hovering around 47%, market sentiment suggests a robust listing for the "Rambhajo" brand.

IPO Details and Subscription Timeline

The Advit Jewels public issue is a fresh issue comprising 1.20 crore equity shares, with no portion allocated to an Offer for Sale (OFS). The company has established 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 investment requirement is ₹13,800, corresponding to a lot size of 100 shares at the upper price band. Allotment is expected to be finalized by June 29, with the company’s shares slated to debut on the NSE and BSE on July 1, 2026.

Strategic Use of Proceeds: Debt Reduction and Growth

The company has outlined a clear roadmap for the ₹165.16 crore raised through the issue. A significant portion of the capital is earmarked for strengthening the balance sheet and fueling expansion:

  • Working Capital: ₹65 crore will be deployed to meet incremental working capital requirements, supporting ongoing business operations.
  • Debt Repayment: ₹65 crore is dedicated to the repayment or prepayment of existing borrowings. This move is intended to lower interest costs and improve long-term profitability.
  • Corporate Purposes: The remaining funds will be utilized for general corporate objectives, providing the firm with much-needed financial flexibility.

Business Model and Financial Performance

Operating from the gemstone hub of Jaipur, Advit Jewels manufactures high-end handcrafted jewellery, including Kundan, Polki, and diamond-studded pieces under its "Rambhajo" brand. The company utilizes a hybrid model, primarily focusing on B2B supplies to dealers and showrooms, while also catering to B2C customers through bespoke, made-to-order collections.

The company’s financial health appears robust based on recent data. For the nine-month period ending December 31, 2025, Advit Jewels reported revenue from operations of ₹123.79 crore and a net profit of ₹25.44 crore, demonstrating strong margin management and earnings potential.

Analyst View: SBI Securities Recommends ‘Subscribe’

Brokerage firm SBI Securities has issued a 'Subscribe' rating for the IPO. While noting that the valuation—an annualized P/E multiple of 18.6x based on 9MFY26 earnings—is higher than some industry peers, the firm believes the premium is justified by the company's superior growth profile.

Analysts highlighted that Advit Jewels maintains stronger operating margins than many of its B2B competitors. Furthermore, the planned reduction in debt through IPO proceeds is expected to enhance future earnings and overall financial stability.

Key Takeaways

  • Strong Market Sentiment: The IPO is trading at a Grey Market Premium (GMP) of approximately 47%, indicating an estimated listing price of ₹202 per share.
  • Financial De-leveraging: Half of the IPO proceeds (₹65 crore) will be used to repay existing debts, aimed at improving the company's bottom line.
  • Solid Fundamentals: The company has shown impressive recent performance with a net profit of ₹25.44 crore in the nine months leading up to December 2025.