Advit Jewels IPO GMP signals 46% listing pop: From issue size to key risks, here are 10 things to know from the RHP

Advit Jewels IPO: The ₹165 crore initial public offering (IPO) of Advit Jewels, which is set to hit the Indian primary market next week, is already garnering strong buzz in the grey market, suggesting heightened investor interest.

The price band for Advit Jewels IPO has been fixed at ₹130-138 per share, with the lot size of 100 shares. For retail investors, the minimum payout is ₹13,800 at the upper end of the price band.

Meanwhile, the grey market premium (GMP) for Advit Jewels IPO is ₹64 apiece. This means that shares of Advit Jewels are trading at ₹202 in the unofficial market. Advit Jewels IPO GMP signals a 46% listing pop at current levels.

Advit Jewels IPO: 10 key things from RHP

While the GMP is strong, investors must also take note of these 10 things about Advit Jewels IPO from its RHP:

1. Advit Jewels IPO dates

The mainboard public offer will open on June 23 and close on June 25. The anchor book for the offer will open a day prior on June 22.

2. Advit Jewels IPO structure

The IPO is entirely a fresh issue of up to 1.19 crore shares, with no offer-for-sale component. This means all proceeds from the share sale will be received by the company.

3. Advit Jewels IPO objective

The company plans to use ₹65 crore from the funds raised for funding working capital needs, ₹65 crore for repayment of outstanding borrowings and the rest for general corporate purposes.

4. Advit Jewels IPO reservation

In the upcoming share sale, 50% is earmarked for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs) and the rest 35% for retail investors.

5. About Advit Jewels

Based out of Jaipur, Rajasthan, Advit Jewels manufactures and sells traditional and contemporary handcrafted jewellery, specialising in kundan, diamond, polki and studded pieces under the brand name Rambhajo. Its offerings include necklaces, earrings, rings, bangles and customised jewellery pieces.

It largely operates on a B2B model, serving dealers, showrooms and jewellery retailers. At the same time, it does cater to B2C customers for exclusive, made-to-order pieces. It has a manufacturing unit located at Jaipur having built up area of 6,450 sq. ft, which is operated on leased premises fully maintained by the company.

6. Industry overview

India’s gold jewellery consumption has displayed a steady decline over the past four years, moving from 610 tonnes in CY 2022, 575.8 tonnes in 2023, and further down to 563.4 tonnes in CY 2024, and 430.5 tonnes in CY 2025. This decline signals a shift in the industry, reflecting a transition towards more value-driven demand, while the sharp contraction in CY 2025 signals heightened stress in the market due to affordability constraints, as per the RHP.

However, overall market value saw growth, supported by soaring prices. Going forward, India is expected to remain one of the largest markets for gold Jewellery globally, but the emphasis will likely remain on smaller volumes with higher-value purchases, marking a transformation in consumer behaviour and market dynamics.

7. Financial snapshot

The company's profit has grown steadily in the last three financial years ended March 31, 2025. The PAT in FY25 was ₹25 crore, higher than ₹14.7 crore in FY24 and ₹10.38 crore in FY23. Growth in revenue has been encouraging as it stood at ₹125 crore in FY25 versus ₹69 crore in FY24 and ₹47 crore in FY23.

8. Listed peers of Advit Jewels

According to the RHP, the listed peers for Advit Jewels are Bluestone Jewellery and Lifestyle, RBZ Jewellers and Radhika Jeweltech.

9. Risks of investing in Advit Jewels IPO

The company faces risks of a rise in input costs. Any non-availability or significant increase in the cost of gold, diamond polki, and other precious or semi-precious stones and absence of long-term contracts with the suppliers could adversely affect its business, results of operations, financial condition and prospects.

The company's business is significantly dependent on Jaipur, with the entire manufacturing operations based thereon, along with 18.18%, 73.09%, 77.32% and 80.56% of the total raw material purchases for the period ended on December 31, 2025 and for the Fiscal years ended on March 31, 2025, 2024 and 2023 are sourced from suppliers who are based in Jaipur City. This dependence exposes us to regional risk or a location risk, the company said in the RHP.

The company has had negative cash flows from operating activities and investing activities in the past. Sustained negative cash flow could adversely impact the business, financial condition and growth.

10. Advit Jewels IPO BRLMs

Holani Consultants is the book-running lead manager and Bigshare Services is the registrar of the issue.

Disclaimer: This story is for educational purposes only. We advise investors to check with certified experts before making any investment decisions.