/images/ppid_59c68470-image-178822504461596554.webp)
What is the story about?
The initial public offering (IPO) of Deepa Jewellers, a Telangana-based B2B designer, processor and supplier of hallmarked gold jewellery, will open for subscription on Tuesday, September 1. The issue will close on September 3.
The company has fixed a price band of ₹168-177 per share. The lot size for an application is 84 shares. The minimum amount of investment required by an individual investor is ₹14,868 based on the upper end of the price band.
Brokerage firm SBI Securities has recommended investors subscribe to the issue for the long term, citing the company's strong financial growth, expansion plans and margin-improvement potential.
SBI Securities said Deepa Jewellers is a Hyderabad-based B2B jewellery company specialising in the design and wholesale supply of traditional and machine-crafted gold jewellery to regional retailers and prominent jewellery chains.
The brokerage noted that the company's revenue, EBITDA and profit after tax grew at a compound annual growth rate (CAGR) of 37.1%, 102.3% and 107.5%, respectively, between FY24 and FY26.
To support future growth, Deepa Jewellers is setting up an in-house manufacturing facility spanning 6,696 square feet in Hyderabad. According to SBI Securities, the facility is expected to help expand EBITDA margins, reduce lead times and improve gold recovery efficiency.
The company also follows a structured hedging framework to mitigate gold price volatility and protect margins.
At the upper end of the price band at ₹177 per share, the IPO is valued at a FY26 price-to-earnings (P/E) multiple of 16.2 times, based on post-issue capital, SBI Securities said.
Deepa Jewellers anchor book
On August 31, Deepa Jewellers raised ₹137.91 crore from 14 anchor investors ahead of the IPO opening.
The company aims to raise up to ₹459.72 crore through the IPO, comprising a fresh issue of shares worth ₹250 crore and an offer-for-sale (OFS) of over 1.18 crore shares by promoter Ashish Agarwal and his wife, Seema Agarwal.
Deepa Jewellers allocated 77.91 lakh shares to 14 anchor investors at the upper end of the price band. The investors include Nomura Singapore, Ashoka India Equity Investment Trust Plc and Citigroup.
Of the total anchor allocation, 14.96 lakh shares were allotted to two domestic mutual funds - Tata Asset Management Company and Unifi Mutual Fund.
Motilal Oswal Finvest emerged as the biggest buyer in the anchor book, picking up 20.3 lakh shares worth ₹35.95 crore. It was followed by WhiteOak Capital and 360 ONE, which each bought 5.08 lakh shares worth nearly ₹9 crore.
At the upper end of the price band, the IPO will have a total issue size of around ₹460 crore, implying a post-issue market capitalisation of nearly ₹1,700 crore.
Deepa Jewellers plans to use ₹215 crore of the net fresh issue proceeds to meet its long-term working capital requirements, including procurement, maintenance and scaling up of inventory. The remaining proceeds will be used for general corporate purposes.
Incorporated in 2016, Deepa Jewellers is an organised B2B designer, processor and supplier of hallmarked gold jewellery. The company primarily operates across Telangana, Karnataka, Andhra Pradesh, Tamil Nadu and Kerala.
It designs, processes and sells a wide range of jewellery through an outsourced manufacturing model supported by a network of karigars.
Motilal Oswal Finvest and Valmiki Leela Capital are acting as the book-running lead managers for the IPO.
The equity shares are proposed to be listed on both the BSE and NSE on September 8.
The company has fixed a price band of ₹168-177 per share. The lot size for an application is 84 shares. The minimum amount of investment required by an individual investor is ₹14,868 based on the upper end of the price band.
Brokerage firm SBI Securities has recommended investors subscribe to the issue for the long term, citing the company's strong financial growth, expansion plans and margin-improvement potential.
SBI Securities said Deepa Jewellers is a Hyderabad-based B2B jewellery company specialising in the design and wholesale supply of traditional and machine-crafted gold jewellery to regional retailers and prominent jewellery chains.
The brokerage noted that the company's revenue, EBITDA and profit after tax grew at a compound annual growth rate (CAGR) of 37.1%, 102.3% and 107.5%, respectively, between FY24 and FY26.
To support future growth, Deepa Jewellers is setting up an in-house manufacturing facility spanning 6,696 square feet in Hyderabad. According to SBI Securities, the facility is expected to help expand EBITDA margins, reduce lead times and improve gold recovery efficiency.
The company also follows a structured hedging framework to mitigate gold price volatility and protect margins.
At the upper end of the price band at ₹177 per share, the IPO is valued at a FY26 price-to-earnings (P/E) multiple of 16.2 times, based on post-issue capital, SBI Securities said.
Deepa Jewellers anchor book
On August 31, Deepa Jewellers raised ₹137.91 crore from 14 anchor investors ahead of the IPO opening.
The company aims to raise up to ₹459.72 crore through the IPO, comprising a fresh issue of shares worth ₹250 crore and an offer-for-sale (OFS) of over 1.18 crore shares by promoter Ashish Agarwal and his wife, Seema Agarwal.
Deepa Jewellers allocated 77.91 lakh shares to 14 anchor investors at the upper end of the price band. The investors include Nomura Singapore, Ashoka India Equity Investment Trust Plc and Citigroup.
Of the total anchor allocation, 14.96 lakh shares were allotted to two domestic mutual funds - Tata Asset Management Company and Unifi Mutual Fund.
Motilal Oswal Finvest emerged as the biggest buyer in the anchor book, picking up 20.3 lakh shares worth ₹35.95 crore. It was followed by WhiteOak Capital and 360 ONE, which each bought 5.08 lakh shares worth nearly ₹9 crore.
At the upper end of the price band, the IPO will have a total issue size of around ₹460 crore, implying a post-issue market capitalisation of nearly ₹1,700 crore.
Deepa Jewellers plans to use ₹215 crore of the net fresh issue proceeds to meet its long-term working capital requirements, including procurement, maintenance and scaling up of inventory. The remaining proceeds will be used for general corporate purposes.
Incorporated in 2016, Deepa Jewellers is an organised B2B designer, processor and supplier of hallmarked gold jewellery. The company primarily operates across Telangana, Karnataka, Andhra Pradesh, Tamil Nadu and Kerala.
It designs, processes and sells a wide range of jewellery through an outsourced manufacturing model supported by a network of karigars.
Motilal Oswal Finvest and Valmiki Leela Capital are acting as the book-running lead managers for the IPO.
The equity shares are proposed to be listed on both the BSE and NSE on September 8.
/images/ppid_59c68470-image-178815259487119633.webp)
/images/ppid_59c68470-image-178814008646897609.webp)
