Advit Jewels' ₹165 crore IPO opens Tuesday. The jeweller's price band is ₹130-138. Analysts cite strong growth but high valuation. Proceeds target debt and working capital.
Alpha Score of 64 reflects moderate overall profile with strong momentum, strong value, weak quality, moderate sentiment.
Advit Jewels' initial public offering opens for subscription Tuesday with a price band of ₹130 to ₹138 per share. The entire issue is a fresh sale of up to 1.19 crore shares, raising ₹165.20 crore.
The company raised ₹49.52 crore from anchor investors Monday, allocating 35.88 lakh shares at ₹138 apiece. Anchors included Holani Venture Capital Fund, Mint Focused Growth Fund, and Venus Investment VCC, among others. Taurus Mutual Fund also participated through one domestic fund across three schemes.
Advit Jewels, based in Jaipur, manufactures handcrafted fine jewellery specializing in Kundan, Polki, diamond and studded pieces under the heritage brand Rambhajo's. The business model is predominantly B2B, selling through a network of retailers and distributors, with some branded retail presence targeting bridal and luxury customers.
Proceeds from the IPO: ₹65 crore for working capital, ₹65 crore for repaying outstanding borrowings, and the remainder for general corporate purposes. Analysts at Anand Rathi noted the company's focus on high-value, craftsmanship-driven categories allows it to derive value beyond gold content. They highlighted specialized design capabilities and an integrated manufacturing setup in Jaipur, one of India's major jewellery hubs.
The IPO is priced at a P/E multiple of 25.1x on FY25 earnings and 19.7x on annualized FY26 earnings. The EV/EBITDA multiple stands at 18.9x on FY25 earnings, implying a post-issue market capitalization of about ₹632 crore. Anand Rathi said the issue appears aggressively priced. The firm cited strong growth prospects and assigned a "Subscribe for Long Term" rating.
A separate note from the lead manager, Holani Consultants, pointed to superior operating margins compared to B2B peers. The note acknowledged a longer working capital cycle due to high inventory requirements. Over FY23-25, the company delivered a compound annual growth rate of 63.7% in revenue, 70.5% in EBITDA, and 56.3% in profit after tax. In the first nine months of FY26, it generated positive cash flow from operations and began repaying debt from internal accruals. The lead manager recommended a "SUBSCRIBE" rating based on growth prospects.
The issue closes on Thursday. Investors can bid in multiples of 100 shares. Allocation: 50% to qualified institutional buyers, 35% to retail investors, and 15% to non-institutional bidders.
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