Deepa Jewellers IPO day 1: GMP signals 31% listing gain; should you apply for ₹460 crore issue?

Deepa Jewellers IPO Day 1: The initial public offering (IPO) of business-to-business (B2B) jewellery company, Deepa Jewellers, opens today, i.e., Tuesday, 1 September, and will remain open until Thursday, 3 September.

The ₹459.72 crore book-build issue combines a fresh issue of about 1.41 crore shares to raise ₹250 crore and offer for sale (OFS) of 1.18 crore shares for ₹209.72 crore.

The company intends to use the net proceeds from the fresh issue of shares to meet long-term working capital requirements towards procurement, maintenance and scaling up of inventory, and for general corporate purposes.

The price band of the issue has been fixed at ₹168 to ₹177 per share. As the Deepa Jewellers IPO subscription window will close on Thursday, share allotment will be finalised on Friday, 4 September. Deepa Jewellers shares are likely to list on the NSE and the BSE on Tuesday, 8 September.

Deepa Jewellers is a B2B designer, processor, and supplier of hallmarked gold jewellery, primarily operating in Telangana, Karnataka, Andhra Pradesh, Tamil Nadu, and Kerala. According to the CRISIL Report, it is one of the key processors and suppliers of vaddanam and CNC machine-cut bangles, distributing to jewellery retail chains and standalone stores.

Its revenue from operations in FY24 was ₹1,024.57 crore, increasing to ₹1,397 crore in FY25 and ₹1,926.68 crore in FY26. Total comprehensive income for FY24 was ₹24.42 crore, increasing to ₹40.7 crore in FY25, and to ₹104.9 crore in FY26.

Deepa Jewellers IPO GMP

The grey market appears bullish on the issue. The grey market premium (GMP) of Deepa Jewellers shares on Tuesday morning was ₹55, indicating the stock could list at ₹232 on the Indian bourses, a premium of 31% over the issue price.

Deepa Jewellers IPO subscription status

By 11:30 AM on Tuesday, the issue had been subscribed to 0.29 times, with the retail portion booked 0.50 times. The segment reserved for non-institutional investors (NIIs) was booked 0.19 times, while the segment reserved for qualified institutional buyers (QIBs) had yet to see any subscription.

Deepa Jewellers IPO review

Brokerage firm Master Capital Services underscored that the Indian gems and jewellery industry is supported by strong gold demand, wedding and festive consumption, rising disposable incomes and increasing preference for organised retail.

"The Indian gems and jewellery retail industry is expected to grow at 4-5% CAGR to ₹15,10,000-15,50,000 crore by FY30. The Indian gold jewellery retail industry is expected to log a CAGR of 12-14% from fiscal 2025 to fiscal 2030 and reach a size of ₹12,00,000-12,50,000 crore by fiscal 2030," Master Capital Services said.

According to the brokerage firm, South India remains a key growth market, accounting for nearly 40% of India's jewellery retail industry. The brokerage firm said the regional market may grow at a 6-7% CAGR through FY30.

The South Indian B2B jewellery market is also projected to grow at 3-5% CAGR, supported by strong cultural affinity for gold and increasing organised retail penetration, said Master Capital Services.

"In this favourable environment, Deepa Jewellers is well-positioned to benefit from rising organised jewellery demand, supported by its B2B business model, presence across key South Indian markets, established customer and karigar network, 15-member in-house design team, and expertise in processing and supplying hallmarked 22-karat gold jewellery, particularly Vardaman and CNC machine-cut bangles. Investors may consider the IPO as a potential long- term investment opportunity," said Master Capital Services.

On the other hand, brokerage firm Swastika Investmart believes that investors may consider the issue for listing gains, considering strong growth, improving profitability and attractive peer

valuation. Swastika, however, added that high customer concentration and thin margins warrant caution, as the top 10 customers accounted for 64.67% of FY26 revenue and there are no long-term contracts.

On the valuation front, Swastika noted that the issue is priced at a meaningful discount to peer average P/E (nearly 16 times versus nearly 24 times average), despite posting the highest return on net worth (56.45%) among all listed peers.

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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.