The Jaipur-based jewellery maker raised ₹49.5 crore from anchor investors ahead of the issue launch
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The Initial Public Offering (IPO) of Advit Jewels opens today and closes on Thursday at a price band of ₹130-138. The IPO is entirely a fresh issue of₹165.20 crore.The IPO is a fresh issue of up to 1,19,68,000 equity shares.Investors can bid for a minimum of 100 Equity Shares and in multiples of 100 Equity Shares thereafter.The offer is being made through the book-building process, wherein not more than 50% of the net offer is allocated to qualified institutional buyers, and not less than 15% and 35% of the net offer is assigned to non-institutional bidders and retail individual bidders respectively.Anchor investorsAs part of IPO process, Advit Jewels Ltd, which is a Jaipur-based manufacturer and seller of traditional and contemporary handcrafted fine jewellery, specialising in Kundan, Polki, diamond and studded pieces, has garnered ₹49.52 crore from anchor investors ahead of its initial public offering that opens for public subscription on Tuesday.The company informed the bourses that it allocated 35,88,700 equity shares at ₹138 per share to anchor investors.Some of the marquee institutions that participated in the anchor include Holani Venture Capital Fund – Holani Venture Capital Fund – 1, Mint Focused Growth Fund PCC- Cell 1 and Venus Investment VCC – Venus Stellar Fund.Amongst equity- oriented schemes, the company has allocated shares to Taurus Mutual Fund.Out of the total allocation of 35,88,700 equity shares to the anchor investors, 11,00,000 were allocated to One domestic mutual funds through three schemes.Holani Consultants Private Limited is the book-running lead manager, and Bigshare Services Private Limited is the registrar of the offer.The proceeds from its fresh issue worth ₹65 crore will be for funding incremental working capital requirements of the company, ₹65 crore for repayment/pre-payment, in full or in part, of certain outstanding borrowings availed, and general corporate purposes.Brokers’ viewsAnand RathiAccording to Anand Rathi, Advit Jewels Limited has established a differentiated position within the Indian jewellery industry through its focus on premium handcrafted jewellery categories such as Polki, Kundan, Jadau and Meenakari jewellery, supported by the heritage Rambhajo’s brand with roots dating back to 1921. The company benefits from specialised design capabilities, skilled artisan networks and an integrated manufacturing setup located in Jaipur, one of India’s most prominent jewellery manufacturing hubs.Its predominantly B2B-led business model provides access to a broad retailer and distributor network, while its branded retail presence enables direct engagement with bridal and luxury jewellery customers.The company’s emphasis on high-value, craftsmanship-driven jewellery categories allows it to derive value beyond gold content, supported by established customer relationships, customization capabilities and strong positioning within the traditional bridal jewellery segment.At the upper price band, the IPO is valued at a P/E multiple of 25.1x based on FY25 earnings and 19.7x on annualized FY26 earnings, along with an EV/EBITDA multiple of 18.9x based on FY25 earnings, implying a post-issue market capitalisation of ₹6,320 million. While the issue appears aggressively priced, the company’s strong growth prospects, scalable business model, and favorable industry outlook support its long-term potential. Accordingly, we assign a “Subscribe for Long Term” rating to the IPO.SBI SecuritiesAdvit Jewels is a jewellery manufacturer with a product portfolio of traditional hand-crafted jewellery. It commands relatively superior operating margins vs its B2B peers. However, working capital cycle is also longer due to business requirement of maintaining high inventory. In 9MFY26, the company has been able to deliver a positive cashflow from operations and has initiated repayment of its borrowing from internal accruals. Moreover, it plans to completely retire its debt as of 9MFY26 through the IPO proceeds which should further help improve profitability going forward. The company has delivered a CAGR of 63.7%/70.5%/56.3% in Revenue/EBITDA/PAT respectively over FY23-25. The issue at the upper price band is valued at an annualized 9MFY26 P/E multiple of 18.6x. Although, this multiple is higher than its peers, it is in line when adjusted for higher growth across revenue and profitability. We recommend to SUBSCRIBE to the issue.Published on June 23, 2026
