Daijiworld Media Network – Mumbai
Mumbai, Jun 25: The initial public offering (IPO) of Advit Jewels Ltd received an overwhelming response from investors on its final day of subscription, with the issue being subscribed more than 63 times by Wednesday morning.
The Rs 165.16-crore IPO, which opened for subscription on June 23, closes on June 25. As of 10:30 am on the final day, investors had placed bids for over 53 crore shares against the 83.79 lakh shares on offer, translating into a subscription of 63.29 times.
The strongest demand came from the non-institutional investor (NII) category, which was subscribed 190.39 times. The retail investor segment witnessed robust participation with a subscription of 43.99 times, while the qualified institutional buyers (QIBs) portion was subscribed 1.63 times.
The company has fixed the price band for the IPO at Rs 130-138 per equity share. Investors can apply for a minimum lot of 100 shares, requiring an investment of Rs 13,800 at the upper price band.
According to market observers, the company's unlisted shares were trading at a premium of Rs 52 in the grey market, indicating a grey market premium (GMP) of around 37.68 per cent over the upper issue price. The trend points to expectations of strong listing gains when the shares debut on the stock exchanges on July 1.
Brokerage firm Anand Rathi has recommended the issue with a "Subscribe for Long Term" rating. The brokerage highlighted the company's strong presence in the handcrafted jewellery segment through its flagship Rambhajo brand, known for traditional Polki, Kundan, Jadau and Meenakari jewellery.
Advit Jewels operates an integrated manufacturing facility in Jaipur and caters primarily to the wholesale jewellery market. The company specialises in customised handcrafted jewellery, including Kundan, Polki, diamond and studded ornaments.
The IPO consists entirely of a fresh issue of 1.20 crore equity shares with no offer-for-sale component. The proceeds will be utilised towards repayment of borrowings, meeting working capital requirements and other general corporate purposes.
At the upper end of the price band, the issue is valued at a price-to-earnings (P/E) multiple of 25.1 times its FY25 earnings.
The equity shares of Advit Jewels are proposed to be listed on both the BSE and NSE, with the listing scheduled for July 1.