Advit Jewels IPO Launch: Key Brokerage Insights, GMP, Subscription Trends, and Essential Details Unveiled!

The IPO of Advit Jewels commenced its subscription process on Tuesday, set to close on June 25. The offer, priced at a fixed rate of Rs 138 per share, targets a capital raise of approximately Rs 165 crore through a fresh issue of 1.19 crore shares. The anticipated listing on the BSE and NSE is scheduled for July 1. The sentiment in the grey market indicates strong investor interest, with shares reportedly commanding a grey market premium (GMP) of around 40%. This premium suggests a favorable outlook for listing gains if the current interest level is maintained.

Advit Jewels, a Jaipur-based jewellery manufacturer, specializes in handcrafted Kundan, Polki, diamond, and studded pieces under the “Rambhajo” brand. The company plans to utilize the IPO proceeds for various purposes, including working capital requirements and repayment of existing borrowings. Financially, Advit Jewels has demonstrated solid growth, with revenues climbing from Rs 69.4 crore in FY24 to Rs 124.9 crore in FY25, and profits after tax increasing significantly from Rs 14.7 crore to Rs 25.4 crore in the same period. Furthermore, the company boasts a relatively high return on equity of 55.8% for FY25, reinforcing its financial health.

Analysts have responded positively to the IPO, with research firm Equivision issuing a “Subscribe” rating based on Advit Jewels’ robust revenue growth and profitability improvements. The company is noted for expanding its product range and tapping into customer demand through key jewellery exhibitions. However, potential risks were highlighted, including reliance on the prices of precious materials and customer concentration. Given the strong GMP, investor attention is likely to grow as subscription activity unfolds, providing a clearer picture of demand from both institutional and retail investors.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova IPO team.)