Noida, Sep 8 (APAC Media): Shares of Deepa Jewellers made a strong debut on the bourses on Tuesday, listing at a premium of nearly 25 per cent over their issue price of Rs 177.
The stock opened at Rs 221.05 on the BSE, marking a gain of 24.89 per cent over the issue price. On the NSE, it debuted at around Rs 221, up 24.86 per cent.
The stock, however, pared some of its opening gains during early trade. At 10:10 am, shares were quoted at Rs 200.75 on the BSE, still 13.42 per cent above the issue price. The stock touched an intraday high of Rs 222.10 and a low of Rs 196.10.
More than 16.99 lakh shares had changed hands on the BSE during the early trading session.
The company’s Rs 459.72-crore initial public offering (IPO) was open for subscription from September 1 to September 3. The price band was fixed at Rs 168-177 per share, with the issue priced at the upper end of the band.
The IPO comprised a fresh issue of shares worth up to Rs 250 crore and an offer for sale of 11,848,340 shares valued at up to Rs 209.72 crore at the issue price.
The public issue received a strong investor response and was subscribed 42.61 times overall. The non-institutional investor portion was subscribed 105.96 times, while the qualified institutional buyer category received bids of around 37 times the shares on offer. The retail portion was subscribed 18.55 times.
Prior to the IPO, Deepa Jewellers raised Rs 137.91 crore from anchor investors through the allotment of 7,791,789 shares at Rs 177 apiece.
The minimum lot size for the public issue was 84 shares, translating into a minimum investment of Rs 14,868 at the upper end of the price band.
The company plans to use proceeds from the fresh issue primarily to meet working-capital requirements. Around Rs 215 crore has been earmarked for procurement, maintenance and expansion of jewellery inventory.
Deepa Jewellers is also setting up a 6,696-square-foot in-house manufacturing facility in Hyderabad, which is expected to become operational before the end of the first half of fiscal 2026-27.
The Hyderabad-based company is a B2B designer, processor and supplier of 22-carat hallmarked gold jewellery. It primarily caters to customers in southern India and also undertakes job work and trades in silver ornaments, 18-carat and 20-carat gold jewellery, precious stones and gold bullion.
As of July 31, 2026, the company had 373 customers across 13 states and one Union Territory. Its customer base included 47 jewellery retail chains and 326 standalone stores.
The company offered 16 product categories and 110 stock keeping units (SKUs). Its major customers include Joyalukkas, Kalyan Jewellers and Lalithaa Jewellery Mart.
Deepa Jewellers sold 1,644 kg of jewellery during fiscal 2025-26.
Financially, the company reported a 38 per cent increase in revenue from operations to Rs 1,926.68 crore in FY26 from Rs 1,397.01 crore in FY25.
Profit before tax rose 158 per cent to Rs 140.33 crore, while profit after tax increased 158 per cent to Rs 104.79 crore during the year.
Based on these figures, the company’s FY26 profit-after-tax margin stood at about 5.44 per cent, while the profit-before-tax margin was around 7.28 per cent.
The strong listing follows robust subscription to the IPO and comes as the company seeks to expand its inventory and manufacturing capabilities using the fresh capital raised from the issue.
At the BSE opening price of Rs 221.05, the value of one minimum lot of 84 shares rose to about Rs 18,568 from the issue investment of Rs 14,868, translating into a notional gain of nearly Rs 3,700, before taxes and transaction costs.
–ENDS–
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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