Deepa Jewellers to open ₹459.72 crore IPO on September 1
Hyderabad-based B2B gold-jewellery supplier Deepa Jewellers has set a ₹168-177 price band for its IPO, with proceeds earmarked largely for working capital and a manufacturing facility intended to improve margins, lead times and gold recovery.
What happened
Telangana-based B2B gold-jewellery supplier Deepa Jewellers will launch its ₹459.72 crore IPO on September 1. Proceeds will fund working capital and expansion,
Key facts
- Price band: ₹168-177 per share
- Lot size: 84 shares
- Minimum retail investment: ₹14,868
- IPO size: up to ₹459.72 crore
- Fresh issue: ₹250 crore
- Anchor fundraising: ₹137.91 crore
- Anchor allocation: 77.91 lakh shares
- Post-issue market capitalisation: nearly ₹1,700 crore
- Working-capital proceeds: ₹215 crore
- Manufacturing facility: 6,696 sq ft
- FY24-FY26 revenue CAGR: 37.1%
- FY24-FY26 EBITDA CAGR: 102.3%
- FY24-FY26 PAT CAGR: 107.5%
- FY26 post-issue P/E: 16.2x
Why this matters
Deepa Jewellers’ planned capital raise signals an effort to scale manufacturing and strengthen margins, potentially making it a more capable B2B partner or competitor in organised jewellery supply.
What to watch
- Subscription split across QIB, NII and retail categories, especially whether institutional demand validates the upper end of the ₹168-177 band.
- Grey-market and broader IPO-market sentiment ahead of the September 1 opening.
- Gold-price direction and volatility, which affect inventory funding requirements, customer purchasing patterns and hedging outcomes.
- Final allocation of fresh proceeds between working capital and manufacturing facility investment.
- Facility construction, commissioning and utilization timelines.
- Post-listing changes in revenue growth, gross margin, gold recovery, inventory turnover, receivable days and operating cash flow.
- Customer concentration and any expansion in B2B order flow after additional inventory capacity becomes available.
- Market the offer around working-capital efficiency, B2B customer relationships and the expected operational benefits of in-house manufacturing.
- Disclose a clear deployment schedule for the ₹250 crore fresh issue, including inventory, facility capex, commissioning milestones and expected gold-recovery improvement.
- Prioritize inventory controls and hedging discipline because higher gold prices can increase funding needs even after the capital raise.
- Use manufacturing integration to pursue faster replenishment, customized product supply and potentially higher-margin customer segments.
- Prepare for investor scrutiny of receivable days, inventory days, operating cash flow and margin progression in the first two to four reported quarters after listing.