Investors looking for the next IPO opportunity may want to keep an eye on Advit Jewels.
Even before the IPO opens for subscription, the company is already attracting strong interest in the grey market.
The IPO will open for bidding on June 23 and close on June 25.
According to grey market trends, the company’s shares are currently trading at a premium of more than 41%, indicating strong investor demand.
The total size of the IPO is around ₹165 crore.
Strong Grey Market Premium Signals Investor Interest
The issue price of Advit Jewels has been fixed at ₹138 per share.
Meanwhile, the stock is reportedly commanding a grey market premium (GMP) of around ₹57.
Based on current GMP levels, market observers believe the shares could list around ₹195 if sentiment remains positive.
If this premium holds until listing, investors who receive allotment could see gains of over 40% on the listing day.
However, investors should remember that GMP is unofficial and can change before listing.
The company’s shares are scheduled to be listed on the BSE and NSE on July 1.
What Does Advit Jewels Do?
Founded in 2019, Advit Jewels is a Jaipur-based jewellery manufacturer and seller.
The company specializes in Kundan, Polki, diamond, and studded jewellery, which it markets under the Rambhajo brand.
Its product range includes:
Necklaces
Earrings
Rings
Bangles
Customized jewellery
The company manufactures jewellery using diamonds and coloured gemstones in 14-carat and 18-carat gold.
Strong Focus on the B2B Business
Advit Jewels mainly operates through a business-to-business (B2B) model.
It supplies jewellery to dealers, retailers, and jewellery showrooms across the country.
The company also serves individual customers through customized and made-to-order jewellery.
In FY25, around 81.63% of the company’s revenue came from the B2B segment, while the remaining 18.37% came from direct consumer sales.
How Will the Company Use the IPO Funds?
The company plans to use the money raised through the IPO for two major purposes.
A significant portion will be used to strengthen working capital requirements, helping the company support future business growth.
The remaining funds will be used to reduce debt and improve the company’s financial position.
According to the company, about ₹65 crore will be allocated toward working capital needs, while another ₹65 crore will go toward debt repayment.
How Much Do Retail Investors Need to Invest?
Retail investors can apply for a minimum of one lot and a maximum of 14 lots.
One lot consists of 100 shares. At the issue price of ₹138 per share, investors will need to invest ₹13,800 for a single lot application.
Before the IPO, the promoters held a 94.59% stake in the company.
After the issue, their shareholding is expected to reduce to 69.88%.
Should Investors Get Excited?
The strong grey market premium has certainly put Advit Jewels in the spotlight ahead of its IPO launch. However, investors should not make decisions based solely on GMP.
It is important to review the company’s financial performance, business model, growth prospects, and risks mentioned in the offer documents before investing.
With subscription opening next week, Advit Jewels is likely to remain on investors’ watchlists in the coming days.
