Nityas Gems
IPO Size: Rs. 108 cr, entirely Fresh Issue
- For Rs. 70 cr working capital
Price band: Rs. 70-75 per share
M cap: Rs. 432 cr, implying 25% dilution
IPO Date: Wed 30th Sep to Mon 5th Oct 2026, Listing Thu 8th Oct 2026
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
B2B Lab-Grown Diamond Jewellery Manufacturer
Nityas Gems and Jewellery is a 4-year-old Surat, Gujarat based manufacturer of lab-grown diamond studded gold jewellery, operating mainly in the domestic market. FY26 revenue of Rs. 203 cr was split as 95% B2B and 4% as B2C, with prominent B2B clients being high growth jewellery startups GIVA, Palmonas, Onya among others. Company’s manufacturing comprises 360 kgs pa facility in Surat, presently 45% utilized, serving 323 customers. Exports, currently <3% of revenue is a future growth driver, although any tariffs from US may be a negative.
B2C Acquisition
In Jul 2025, company acquired 50.04% stake in its largest B2B customer ‘Ayaani’ for Rs. 24 cr to establish direct to consumer (D2C) reach via 10 retail stores and a shopping website. However, company’s entire focus is on B2B making this acquisition an unnecessary diversion of funds and management bandwidth.
Doubling Revenue
Company was started only in July 2023. In FY24, its revenue was Rs. 54 cr, which rose to Rs. 97 cr in FY25 and more than doubled to Rs. 203 in FY26, although on an low base. Likewise, PAT has jumped from Rs. 4 cr in FY24, to Rs. 10 cr and to Rs. 22 cr in the past 3 years respectively. FY26 net margin stood at 11% net margin with net worth of Rs. 62 cr and a healthy inventory turn of 3.2x.
Growth justifies Pricing
M cap of Rs. 432 cr implies a current year PE multiple of 10x, on FY27E estimated EPS of around Rs. 7.2. This is attractive for the high growth demonstrated in past 4 years, double digit net margin and expected RoE of ~24% going forward. An important monitorable post listing, however, would be the low promoter holding, dropping from 58% at present, to ~44% post IPO.
Lab grown diamonds industry is faced with excess supply vis-a-vis demand but the D2C jewellery market in India is witnessing a lot of investment given affordability and trendier designs. Nitya targeting such customers, has a promising future.
