Advit Jewels IPO Day 1 LIVE: Issue subscribed 11 times on Day 1; retail portion booked 27x

The initial public offering (IPO) of Advit Jewels witnessed strong demand from both retail and non-institutional investors on its opening day of bidding on June 23.

The IPO, which will remain open for subscription until June 25, received bids for 9.45 crore shares against the 83.79 lakh shares on offer, resulting in an overall subscription of 11.28 times by the end of Day 1, according to exchange data.

Among the investor categories, the retail portion attracted the highest interest, getting subscribed 27 times, followed by the non-institutional investors (NII) segment at 24 times. The qualified institutional buyers (QIB) portion was also fully subscribed.

The sector's growth outlook is supported by several tailwinds. Gold's cultural significance in India—particularly for weddings, festivals, gifting, and as an investment—continues to drive steady demand.

Demand for Kundan and Polki jewellery also remains strong in the bridal and premium designer segments. The ongoing formalisation of the industry, driven by regulatory measures and evolving consumer preferences, is gradually shifting business towards organised players.

Government initiatives such as BIS hallmarking, GST implementation, and various skill-development and infrastructure programmes have further strengthened consumer confidence while enabling organised manufacturers to scale operations and improve standardisation, according to Canara Bank Securities.

Advit Jewels Limited operates in India's highly fragmented gems and jewellery industry, a market traditionally dominated by a large network of small family-owned jewellers and skilled artisans. While the company cites the Dun & Bradstreet report in its offer documents, the available sources do not provide a specific estimate of the industry's total size or Advit Jewels' exact market share.

Advit Jewels IPO Day 1 LIVE: The Company’s sales strategy is structured across three primary channels, comprising Business-to-Business (B2B), direct-toconsumer (B2C), and institutional/relationship-led sales. Under the B2B segment, the Company caters to wholesale and domestic clients through both ready-made and made-to-order jewellery offerings.

Products are supplied under private label and white-label arrangements, enabling clients to customize designs, materials, and finishes in line with their brand requirements. The strength of the “Rambhajo” brand, built over decades of craftsmanship, quality, and trust, continues to drive customer acquisition and retention.

Under the B2C segment, the Company operates a direct sales model through its display centre, which enables controlled customer experience, personalized consultations, and customized product offerings without the cost structure of a full-scale retail network.

1. Integrated Manufacturing Platform with In-House Capabilities
2. Strong Design Capabilities and Customization Expertise
3. Established Heritage Brand with Deep Industry Experience
4. Robust Operational Controls and Risk Management Framework
5. Focus on Quality and Craftsmanship

Advit Jewels IPO Day 1 LIVE: The Company intends to expand its presence across India with a focus on high-potential Tier I and Tier II cities. A key component of this strategy is the introduction of a franchise-led expansion model, which is expected to enable faster scale-up, strengthen the retail network, and reduce capital requirements per store.

The Board of Directors, pursuant to its resolution dated August 01, 2025, has approved the Franchise Development Program to support this expansion strategy. As part of its brand-building initiative, the Company is also establishing a flagship store which is expected to serve as a brand showcase and set benchmarks for customer experience, product presentation, and store design across the franchise network. In parallel, the Company is strengthening its digital and social media presence to enhance customer engagement and brand visibility.

As of May 15, 2026, the Company’s social media presence includes 1,06,000 followers on Instagram, 3,100 followers on Facebook, and 5,000 followers on LinkedIn.

Advit Jewels IPO Day 1 LIVE: According to Anand Rathi Research, at the upper price band, the IPO is valued at a P/E multiple of 25.1x based on FY25 earnings and 19.7x on annualized FY26 earnings, along with an EV/EBITDA multiple of 18.9x based on FY25 earnings, implying a post-issue market capitalization of ₹6,320 million. While the issue appears aggressively priced, the company's strong growth prospects, scalable business model, and favorable industry outlook support its long-term potential. Accordingly, we assign a "Subscribe for Long Term" rating to the IPO.

Advit Jewels IPO Day 1 LIVE: Below are the key risks to consider -
1. Gold, diamond polki and precious/semi-precious stones constitute virtually the entire raw material cost of the company, accounting for over 99% of material consumption across the reported periods. The company does not operate under long-term procurement contracts and remains exposed to fluctuations in gold and gemstone prices, supply shortages and sourcing disruptions. Any significant increase in raw material prices or inability to secure adequate supplies could adversely impact margins, working capital requirements and profitability.

2. The business is highly inventory-intensive, with inventory levels increasing significantly over the last three fiscals and accounting for a substantial proportion of both current assets and annual revenue. Inventory holding days increased from 91 days in FY23 to 199 days in FY25.

3. The company relies on a limited number of suppliers for procurement of gold, diamond polki and gemstones, with the top 10 suppliers accounting for nearly 87%–94% of raw material purchases during the reported periods. Any disruption in supply, deterioration in supplier relationships, adverse pricing actions or inability to source materials from alternative vendors could adversely affect production schedules and operating performance.

4. The company's entire manufacturing operations are located in Jaipur, Rajasthan, which is also the primary sourcing hub for a significant portion of its raw materials. Consequently, any regional disruption arising from regulatory actions, labour shortages, infrastructure constraints, natural calamities or other unforeseen events in Jaipur could adversely impact manufacturing operations, procurement activities and overall business continuity.

Advit Jewels IPO Day 1 LIVE: Gold prices in India have witnessed a strong upward trend over the last five years, increasing from approximately ₹48,700 per 10 grams in FY2021 to around ₹71,800 per 10 grams in FY2025, before crossing the ₹1 lakh mark during FY2026.

Advit Jewels IPO Day 1 LIVE: The Top 10 customers: (i) GDK Jewels Private Limited (ii) Anuj Jewels (iii) TG Legacy private Limited (iv) SS Jewels India Limited (v) Tatiwala Gehna (vi) Khurana Jewellery House (vii) Raghav Jewels (viii) Sneha Jewels (ix) L S Enterprises (x) Palsani Jewellers Private Limited.

Advit Jewels IPO Day 1 LIVE: Advit’s manufacturing facility combines traditional craftsmanship with cutting-edge technology to produce handcrafted Kundan and Polki jewellery efficiently. It also utilizes advanced equipment such as laser cutting and engraving systems, casting units, progressive and hydraulic press dyes, and 3D printing capabilities.

Advit Jewels IPO Day 1 LIVE: Gold & Diamond price volatility, High and increasing inventory requirement, Seasonality, Supplier and Client Concentration.

1. Integrated Manufacturing Platform with In-House Capabilities
2. Strong Design Capabilities and Customisation Expertise
3. Established Heritage Brand with Deep Industry Experience
4. Robust Operational Controls and Risk Management Framework
5. Focus on Quality and Craftsmanship

Advit Jewels IPO Day 1 LIVE: According to SBICAP Securities, in 9MFY26, the company has been able to deliver a positive cashflow from operations and has initiated repayment of its borrowing from internal accruals. Moreover, it plans to completely retire its debt as of 9MFY26 through the IPO proceeds which should further help improve profitability going forward.

The company has delivered a CAGR of 63.7%/70.5%/56.3% in Revenue/EBITDA/PAT respectively over FY23-25. The issue at the upper price band is valued at an annualized 9MFY26 P/E multiple of 18.6x.

“Although, this multiple is higher than its peers, it is in line when adjusted for higher growth across revenue and profitability. We recommend to SUBSCRIBE to the issue,” said the brokerage.

The three-day subscription window for the public issue is set to close on June 25, 2026. The basis of allotment is expected to be finalised on June 29, 2026.

Shares are likely to be credited to the demat accounts of successful applicants by June 30, 2026, while refunds for unsuccessful bidders are expected to be initiated on the same day.

The company's shares are tentatively scheduled to debut on both the BSE and NSE on July 1, 2026.

Advit Jewels IPO Day 1 LIVE: The IPO consists of a new issuance of 1.20 crore equity shares, without any share sale component included.

The funds raised from this issuance will be used to pay off borrowings totaling ₹65 crore, support working capital needs of ₹65 crore, and for general corporate purposes.

Advit Jewels IPO Day 1 LIVE: Advit Jewels Ltd raised ₹49.52 crore from anchor investors on Monday in anticipation of its initial public offering (IPO).

The anchor investors include Holani Venture Capital Fund-1, Mint Focused Growth Fund PCC-Cell 1, Venus Investment VCC Venus Stellar Fund, and Taurus Mutual Fund, as stated in a circular posted on the BSE website.

The company based in Jaipur allocated 35.88 lakh equity shares to the anchor investors at a price of ₹138 each, bringing the total transaction amount to ₹49.52 crore.

Advit Jewels IPO Day 1 LIVE: Advit Jewels IPO GMP today is +64. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of the Advit Jewels share was ₹202 apiece, which is 46.38% higher than the IPO price of ₹138.

Based on grey market activity over the last 13 sessions, today's IPO GMP is rising, indicating a positive listing. The lowest GMP recorded is ₹0.00, while the highest is ₹91, as per expert analysis.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.