Deepa Jewellers IPO Day 2: GMP at 25% and Subscription Approaching 90%—Is It Time to Invest?
The Deepa Jewellers IPO has seen significant traction on its second day of bidding, with the issue garnering 87% subscription on Day 1 against an offering of 1.85 crore shares. The IPO, priced between Rs 168 and Rs 177 per share, aims to raise Rs 459.72 crore through a fresh issue and an offer for sale, with a particular focus on enhancing working capital. The retail segment showed robust interest, with Retail Individual Investors (RIIs) subscribing 1.38 times the allocated shares. The subscription period will remain open until September 3, 2026, with share allotment slated for September 4 and listing expected on both the NSE and BSE on September 8, 2026.
In the grey market, the Deepa Jewellers IPO is currently trading at a premium of Rs 44 per share, translating to a 25% premium over the upper price band of Rs 177 per share. This suggests positive market sentiment and expectations for a strong listing. With an estimated listing price around Rs 221 per share, investors are evidently optimistic, interpreting the Grey Market Premium (GMP) as a favorable indicator, although fluctuations can occur depending on broader market dynamics. The relatively lower P/E multiple of 13.15 times at the floor price versus the industry average of 23.92 times indicates that Deepa Jewellers could be poised for solid growth potential as it enters the public market.
This IPO offers a unique opportunity for Indian investors to engage with a company that shows promising financial performance, boasting a 45.26% Return on Net Worth (RoNW) and significant revenue growth. Given the backdrop of increasing demand for organized retail in the gems and jewellery sector, Deepa Jewellers is well-positioned to benefit from favorable market trends. Retail investors may find this IPO attractive, particularly for those with a long-term investment outlook, as the company aims to strengthen its inventory and meet operational needs.
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Investors should consider the Deepa Jewellers IPO as a potential addition to their portfolio, particularly given the company’s strong growth metrics and competitive market positioning. The favorable grey market sentiment also implies a positive reception upon listing, benefiting those willing to take a long-term investment approach.
Disclaimer: Market insights and analyses on Wealthova are strictly for educational and informational purposes and do not constitute financial or investment advice. Please consult a SEBI-registered financial advisor before making investment decisions.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova IPO team.)