Advit Jewels
IPO Size: Rs. 165 cr, entirely Fresh Issue
- Rs. 65 cr for working capital
- Rs. 65 cr for debt repayment, to become debt-free post IPO
Price band: Rs. 130-138 per share
- Raised Rs.23 cr at Rs. 125 per share, via private placement in May 2026
M cap: Rs. 632 cr, implying 26% dilution
IPO Date: Tue 23rd Jun to Thu 25th Jun 2026, Listing Wed 1st Jul 2026
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
Jaipur based B2B Jewellery Manufacturer
Advit Jewels manufactures fine handmade kundan, polki, meena and jadau jewellery, at its sole facility in Jaipur, of 400 kg installed capacity, with capacity utilisation of less than 50%. It also owns a 105 year old brand ‘Rambhajo’ with B2C retailing contributing nearly 17% to Rs. 125 cr revenue in FY25. It has strong social media presence, with 107k followers on Instagram, and is setting up a 28,000 sq ft retail store in Jaipur, to be funded through internal accruals and debt.
Superior Margins than Peers
Due to presence in kundan, polki, meena, diamond studded pieces, company’s net margin is as high as 20%+. This is over double the 6-10% net margin of peer B2B jewellery manufactures such as Sky Gold, Shanti Gold, RBZ, Radhika Jeweltech, as they are predominantly engaged in gold jewellery.
Small but Growing
Between FY23 to FY25, production volume and sale volume have increased at 44% and 30% CAGR respectively, with 64% revenue CAGR, on a small base. FY25 topline was just at Rs. 125 cr, with revenue increase of 81% YoY being a mix of gold price rise and higher volume sold (28%).
9MFY26 revenue stood at Rs. 124 cr, with 30% EBITDA margin and 20.5% net margin, leading to PAT of Rs. 25 cr. 9MFY26 EPS of Rs. 7.95 was as much as FY25’s EPS of Rs. 7.92. Due to seasonality, Q4 accounts for over 40% of annual revenue, which explains the increase in debtors to Rs. 42 cr as of 31.12.25, from Rs. 15 cr as of 31.3.25. On an equity of Rs. 34 cr (FV Rs. 10 each), company has net worth of Rs. 84 cr and entire Rs. 65 cr debt is planned to be repaid from IPO proceeds.
Attractive Pricing
FY27E estimated EPS is seen at about Rs. 10.3 on expanded equity and interest savings on loan repayment. M cap of Rs. 632 cr implies a PE multiple of about 13x, which is seen attractive for 20% net margin, expected growth on higher working capital availability and 17% RoE for FY27E.
Although B2B peers RBZ, Shanti Gold and Radhika Jeweltech are trading at PE multiples of 9-12x, their margins are much lower. Also, Advit’s higher margins can expand further, on interest cost savings and higher B2C contribution going forward.
Due to the dilution, promoter stake of 95% will drop to 70% post IPO.
16th Jun 2026 at 07:21 pm