Augmont Enterprises

IPO Size: Rs. 825 cr

• Fresh Issue of Rs. 620 cr (9% dilution) for working capital of Rs. 465 cr
• Offer for Sale (OFS) of Rs. 205 cr by promoter (93% to shrink to 82%)

Price band: Rs. 750-788 per share

M cap: Rs. 7,200 cr (IPO is 11% of m cap)

IPO Date: Fri 21^st Aug to Tue 25^th Aug 2026, Listing Mon 31^st Aug 2026

Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.

 

Bullion Value Chain Company

Augmont Enterprises is a 14-year-old Mumbai-based online platform company engaged in gold and silver value chain - procurement, refining, bullion trading, digital gold offerings, jewellery manufacturing, facilitating gold-backed financial services. It has two gold refining facilities, aggregating 284 MTPA capacity, at Mumbai and Uttarakhand and is authorised to deliver refined bullion to commodity exchanges of BSE and MCX.

 

3 Business Verticals

1. B2B Online Platform (87% of revenue): Augmont SPOT platform, operational since 2012, is a fully electronic, over-the-counter delivery-based platform to sell physical gold and silver bars, to 5,200 customers comprising jewellers, bullion dealers and manufacturers.
2. International sales (6% of revenue): 13.8 MTPA manufacturing facility at Sitapur SEZ, Jaipur, Rajasthan, for exports to Hong Kong, Turkey, UAE
3. B2C Online Platform (7% of revenue): ‘Augmont Gold For All’ platform for consumer-focused offerings, such as digital gold (online purchase and physical delivery), gold and silver coins, facilitating loan against gold etc.  

 

‘High Volume, Low Spread’

Augmont’s business is extremely high-volume (Rs. 94,186 cr topline in FY26), with 25-45 bps spread on each B2B transaction. Excluding gross purchases, net revenue would be Rs. 581 cr. Of this, PAT stood at Rs. 348 cr, including Rs. 77 cr derivative gain. Excluding other income, FY26 PAT is at Rs. 277 cr, implying 30 bps profit yield on Rs. 94,186 cr topline.  

Rise in gold prices of past 2 years has increased company profit from Rs. 44 cr in FY23 to Rs. 348 cr in FY26, even as gold volume remained flat at ~49 MT, as gold prices rose at 37% CAGR in past 3 years. Thus, revenue rose at 44% CAGR from Rs. 31,289 cr in FY23 with company’s earnings not being inventory gains, as it holds hardly Rs. 342 cr inventory as of 31.3.26, representing 1.3 days of revenue.  

 

Working Capital for Growth

As of 31.3.26, company’s working capital is at about Rs. 450 cr. Since RBI regulations do not permit borrowing from bank or NBFC, fresh issue doubling working capital will act as growth capital.

Company’s business is different from an exchange - it is taking OTC (over the counter) orders online, with physical delivery at its delivery centers. While gold price fall may lower absolute profit on each trade, growth prospects are attractive due to large opportunity.

 

Attractive Pricing

M cap of Rs. 7,200 cr and enterprise value of Rs.7,073 cr, implies a PE multiple of 19x on FY26 EPS of Rs. 42. Excluding the large other income component, historic PE multiple is at 24x, which is still attractive for the growing platform business and 50% RoE.

In Aug 2025, company allotted 3 lakh shares (0.36% equity) to Mr. Utpal Sheth at Rs. 678.51 per share. 16% premium in 1 year is justified as company’s EBITDA is up 27% and PAT 53% in the past year.  

Interestingly, promoter and whole-time director Mr. Ketan Bhawarlal Kothari does not hold a single equity share in the company, while RiddhiSiddhi Bullions, a well-known name in trade, is a promoter group company.