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Anand Rathi Report
Deepa Jewellers recorded an overall Day 1 subscription of 0.87x.
Deepa Jewellers IPO: 10 Key Things to Know Before You Subscribe
1. IPO dates
Deepa Jewellers IPO opened for subscription on September 1, 2026, and will close on September 3, 2026. The shares of the issue are tentatively scheduled to list on both NSE and BSE on Sep. 08.
2. Price band
A B2B gold jewellery designer, processor and supplier has fixed the price band in the range of Rs 168-177 per share with a face value of Rs 2 each.
3. Issue size
The Rs 460 crore IPO, is a main-board issue, comprises of fresh issue worth Rs 250 crore and Offer for Sale (OFS) worth Rs 210 crore.
4. Lot size
Investors can bid for a minimum of 84 shares and in multiples thereof. At the upper price band investors would require a minimum investment of Rs 14,868.
5. Lead manager
Emkay Global Financial Services is the book running lead manager to the issue while Bigshare Services Pvt Ltd is the registrar to the offer.
6. Objects of the Issue
- Funding long-term working capital requirements for inventory procurement and expansion.
- General corporate purposes.
- OFS proceeds will go to selling shareholders.
7. Peer comparison
Sky Gold and Diamonds, Shanti Gold International, Shringar House of Mangalsutra, RBZ Jewellers and Khazanchi Jewellers are the other listed peers in the sector.
8. Financial performance
- Revenue from operations increased to Rs 1,926.7 crore in FY26 from Rs 1,397 crore in FY25 and Rs 1,024.6 crore in FY24.
- Ebitda rose to Rs 146.3 crore in FY26 from Rs 56 crore in FY25.
- PAT jumped to Rs 104.8 crore in FY26 from Rs 40.5 crore in FY25 and Rs 24.3 crore in FY24.
9. About Deepa Jewellers
Incorporated in 2016, Deepa Jewellers is a B2B gold jewellery designer, processor and supplier. The company primarily caters to jewellery retailers across Telangana, Karnataka, Andhra Pradesh, Tamil Nadu and Kerala. Key customers include Kalyan Jewellers, Joyalukkas, Lalithaa Jewellery Mart, TBZ and Manoj Vaibhav Gems and Jewellers.
10. Key strengths, strategies and risks
Key Strengths:
- Significant revenue contribution from Southern India.
- Well established customer base with long-standing relationship with jewellery retail chains and standalone stores
- Diverse product portfolio with varied weight ranges, designs and specialisation in vaddanam and CNC machine cut bangles
- Established procurement network and long -standing relationship with karigars
Key Strategies
- Significant revenue contribution from Southern India
- Well established customer base with long-standing relationship with jewellery retail chains and standalone stores
- Diverse product portfolio with varied weight ranges, designs and specialisation in vaddanam and CNC machine cut bangles
- Established procurement network and long -standing relationship with karigars.
Key risks
- Customer concentration risk
- Product concentration risk
- Geographic concentration risk
- Gold price and availability risk
- Supplier concentration risk
- Counterparty credit risk
- Design confidentiality risk.
Valuation
At the upper price band, based on FY26 earnings, the issue is valued at 16.2x P/E, 5.45x P/BV and 12.39x EV/Ebitda, implying a post-issue market
capitalization of Rs 1,701.4 crore, making the issue fairly priced. However, the business remains exposed to fluctuations in gold prices, dependence on
outsourced karigars, working capital requirements, customer concentration and intense competition in the jewellery industry.
With its strong B2B customer network, established position in vaddanam and CNC machine-cut bangles, experienced promoter group and planned in-house manufacturing facility, the company is well positioned to benefit from the growing demand for branded and hallmarked gold jewellery. Thus, Anand Rathi assigns a “Subscribe for Long Term” rating for the issue.
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