Deepa Jewellers IPO sees 0.87x day-one subscription for ₹250 crore issue
Southern India B2B gold-jewellery supplier Deepa Jewellers has opened its IPO at ₹168–₹177 a share. The company plans to deploy ₹215 crore of fresh-issue proceeds toward working capital and inventory, alongside a proposed Hyderabad facility.
What happened
Southern India B2B gold-jewellery supplier Deepa Jewellers' IPO is open, with a ₹168-₹177 price band and 87% day-one subscription. The company plans to use ₹215
Key facts
- IPO price band: ₹168-₹177 per share
- Grey market premium: ₹44
- Implied listing price: ₹221, or 24.86% above upper price band
- Lot size: 84 shares
- Day-1 subscription: 0.87x; retail 1.38x; NII 0.63x; QIB 0.11x
- Fresh issue size: ₹250 crore
- Fresh-issue proceeds for working capital: ₹215 crore
- FY26 revenue: ₹1,926.68 crore
- FY26 RoNW: 56.45%; ROCE: 52.08%
- Proposed Hyderabad facility: 6,696 sq ft
Why this matters
The planned Hyderabad facility and inventory-funded growth could strengthen Deepa Jewellers’ regional distribution footprint, making it a more consequential B2B partner or competitor in South Indian jewellery sourcing.
What to watch
- Final-day QIB and HNI subscription levels versus retail demand.
- Whether total subscription clears 1x comfortably before close.
- Movement in grey-market premium relative to the ₹177 upper price band.
- Spot gold-price volatility during the IPO and immediately before listing.
- Any revised disclosure on Hyderabad facility timing, inventory procurement or working-capital cycle.
- Anchor-investor quality and post-allotment concentration.
- Comparable jewellery-retail and gold-financing stock performance ahead of listing.
- Market the working-capital deployment as a revenue-enabling inventory expansion rather than balance-sheet funding.
- Disclose inventory-turnover, gold-price hedging, customer concentration and receivables metrics to address institutional concerns.
- Clarify the timeline, capex requirement and expected utilization of the proposed Hyderabad facility.
- Monitor bidding-book composition daily, especially QIB and non-institutional participation during the final subscription window.
- Prepare post-listing communication around use-of-proceeds milestones and quarterly working-capital discipline.