Deepa Jewellers opens ₹460 crore IPO to fund inventory and expansion
B2B gold-jewellery supplier Deepa Jewellers has opened its ₹460 crore IPO, comprising a ₹250 crore fresh issue and ₹210 crore offer for sale. Fresh proceeds are earmarked for inventory-led working capital and expansion as it supplies major South Indian jewellery retailers.
What happened
B2B gold-jewellery supplier Deepa Jewellers’ Rs 460 crore IPO entered its second subscription day. The company supplies major South Indian jewellery retailers
Key facts
- IPO size: Rs 460 crore
- Fresh issue: Rs 250 crore
- OFS: Rs 210 crore
- Price band: Rs 168-177 per share
- Day 1 subscription: 0.87x
- FY26 revenue: Rs 1,926.7 crore
- FY26 EBITDA: Rs 146.3 crore
- FY26 PAT: Rs 104.8 crore
- Post-issue market capitalisation: Rs 1,701.4 crore
Why this matters
A better-capitalized B2B gold-jewellery supplier may become a more scalable partnership, sourcing or acquisition target as the South Indian jewellery supply chain consolidates.
What to watch
- Final IPO subscription levels by QIB, non-institutional and retail categories.
- Anchor-investor participation, issue pricing response and September 8 listing performance.
- Gold-price movements during the subscription-to-listing window and the festive/wedding sales season.
- Disclosure of top-customer exposure, receivable days, inventory days and working-capital borrowing after the IPO.
- New retailer-supply agreements, geographic expansion beyond core South Indian markets and evidence of improved inventory turnover.
- Any post-listing changes in margins caused by bullion volatility, competitive pricing or increased credit to retail clients.
- Deploy fresh-issue proceeds into higher-turning gold-jewellery inventory rather than broad speculative stock accumulation.
- Pursue additional supply contracts with regional and national South Indian jewellery chains to diversify customer concentration.
- Use increased scale to negotiate better procurement terms, credit periods and making-charge economics with suppliers and manufacturers.
- Strengthen inventory hedging, gold-price risk controls and receivables discipline as the balance sheet expands.
- Communicate inventory-turn targets, customer mix and return-on-capital milestones soon after listing to reassure public investors.