Deepa Jewellers shares ended their stock market debut with strong gains on Tuesday, September 8, settling at a 25% premium to the issue price on both exchanges. The stock closed at Rs 221 on the NSE and Rs 221.05 on the BSE, compared with its issue price of Rs 177 per share.
The initial public offer of Deepa Jewellers was subscribed nearly 43 times on the final day of bidding on Thursday, driven by strong demand across investor categories, particularly institutional buyers.
The Rs 460-crore IPO received bids for 78,91,06,332 shares against 1,85,20,085 shares on offer, as per NSE data.
The portion reserved for non-institutional investors was subscribed 105.96 times, while the quota for qualified institutional buyers received 37 times subscription. The category for retail individual investors was subscribed 18.55 times.
Deepa Jewellers, on Monday, raised Rs 138 crore from anchor investors, including Motilal Oswal Finvest and WhiteOak Capital Mutual Fund.
The public issue had a price band of Rs 168-177 per share and comprises a fresh issue of equity shares worth up to Rs 250 crore and an offer-for-sale of over 1.18 crore shares. The post-issue implied market capitalisation is estimated at around Rs 1,700 crore at the higher end.
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About The Company
Incorporated in 2016, Deepa Jewellers is an organised B2B designer, processor and supplier of hallmarked gold jewellery, primarily operating across Telangana, Karnataka, Andhra Pradesh, Tamil Nadu and Kerala.
The company designs, processes and sells a wide range of jewellery through an outsourced manufacturing model, supported by a network of 'karigars'.
Proceeds from the fresh issue will be utilised by the company to fund long-term working capital requirements for procurement, maintenance and scaling up of inventory, besides general corporate purposes.
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