A Hyderabad-based B2B gold-jewellery designer-and-supplier to South India opens its Rs 459.72 crore mainboard issue on September 1
An organized B2B designer, processor and supplier of hallmarked gold jewellery catering to the southern region plans to raise Rs 459.72 crore via a mainboard listing on BSE and NSE.
Deepa Jewellers Ltd (DJL), a Hyderabad-based wholesale gold-jewellery specialist supplying retail chains and standalone stores across South India, opens for subscription on September 1 with the issue closing on September 3.
The company is an organized business-to-business (B2B) designer, processor and supplier of hallmarked gold jewellery, with operations concentrated across Telangana, Karnataka, Andhra Pradesh, Tamil Nadu and Kerala.
Per a CRISIL report, it is one of the key processors and suppliers of vaddanam (waist belts) and CNC machine-cut bangles, distributing to jewellery retail chains and standalone stores rather than selling directly to end customers — a pure wholesale, trade-facing model.
The design-and-processing engine is asset-light. DJL designs jewellery through an in-house team, then processes it via an outsourced manufacturing model supported by a network of 41 karigars: it supplies the raw materials — gold, alloys and precious stones — to the karigars, who manufacture to its designs and specifications and return finished, ready-to-sell ornaments for a making charge.
This keeps capital investment low while offering operational flexibility and scalability.
All finished jewellery is hallmarked, certifying purity per regulatory standards. The company works in 22-karat gold jewellery, plus job-work services and trading of related products.
The product range is distinctly regional and traditional — vaddanam, CNC machine-cut bangles, gents kada, vanky (armlet), dandpatti (bajuband), gundlamala haaram and necklaces, kangan, earrings, mangtika, maatil, champasaralu, jada, rings and bracelets.
Beyond core processing, DJL also undertakes job work (processing customer-supplied raw material for a fee without taking ownership) and trades in silver ornaments, 18/20-karat gold, precious stones and gold bullion.
As of July 31, 2026, it had 16 products and 110 SKUs, and an in-house team of 15 designers developing designs tailored to regional preferences.
The customer network is the standout credential. As of July 31, 2026, DJL served 373 customers across 13 states and one union territory — comprising 47 jewellery retail chains and 326 standalone stores — and owns no standalone stores itself.
Its long-standing relationships include marquee names such as Joyalukkas, Kalyan Jewellers, Lalithaa Jewellery, Tribhovandas Bhimji Zaveri, Manoj Vaibhav Gems ‘N’ Jewellers, Bhima Jewels and CMR Jewellers, among many others. The company had 133 employees as of July 31, 2026.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | September 1, 2026 |
| Issue Closes | September 3, 2026 |
| Listing | BSE, NSE (Mainboard) |
| Listing Date | September 8, 2026 |
| Price Band | Rs 168 – Rs 177 per share |
| Face Value | Rs 2 |
| Issue Size | Rs 459.72 crore (~2,59,72,634 shares) |
| Fresh Issue | Rs 250.00 crore (~1,41,24,294 shares) |
| Offer for Sale | Rs 209.72 crore (1,18,48,340 shares) |
| Min. Application | 84 shares (multiples thereafter) |
| Min. Retail Investment | Rs 14,868 |
| IPO as % of Post-IPO Capital | 27.02% |
| Post-IPO Market Cap | Rs 1,701.40 crore |
| QIB / NII / Retail | 50% / 15% / 35% |
| Lead Managers | Emkay Global Financial Services, Valmiki Leela Capital |
| Registrar | Bigshare Services Pvt. Ltd. |
From the net fresh proceeds, the company will utilise Rs 215.00 crore for long-term working capital (procurement, maintenance and scaling of inventory), with the rest for general corporate purposes.
The OFS at Rs 209.72 crore is a meaningful chunk (nearly half the issue), so a large part of the raise goes to selling shareholders rather than the business.
Post-IPO, paid-up equity rises from Rs 16.40 crore (8,20,00,000 shares) to Rs 19.22 crore. On capital history, the company issued bonus shares in a 3:1 ratio in November 2025, with promoters’ average cost of acquisition at just Rs 0.00 and Rs 0.50 per share — against a Rs 177 offer price.
Price Band Analysis
At the upper band of Rs 177, on FY26 earnings the issue is valued at about 16.2x P/E, 5.45x P/BV and 12.39x EV/EBITDA, for a post-issue market cap of around Rs 1,701 crore. Anand Rathi characterises this as fairly priced.
On the source note’s alternative anchors, the FY26-annualised P/E works out to 16.24x while on FY25 earnings it is a much higher 41.94x — so the valuation looks reasonable on FY26 but stretched if the recent margin surge doesn’t hold.
GMP Watch
Grey-market interest has been healthy and building. In tracked data, the Deepa Jewellers IPO GMP ranged from a low of ₹11 (August 27) to a high of ₹55 (September 1), and stood at around ₹38–45 on opening day — implying a listing gain of roughly 21–25% over the Rs 177 upper band (an indicative listing near ₹215–222).
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Total Income | 1,025.73 | 1,400.10 | 1,927.73 |
| Net Profit (PAT) | 24.42 | 40.58 | 104.79 |
| PAT Margin (%) | 2.37 | 2.90 | 5.44 |
| RoCE (%) | 22.76 | 30.60 | 52.08 |
The top-line growth is impressive — total income nearly doubled from Rs 1,025.73 crore in FY24 to Rs 1,927.73 crore in FY26, in line with the buoyant gold-jewellery sector. The profit growth was even sharper: PAT jumped from Rs 24.42 crore to Rs 104.79 crore over the same span, more than doubling in FY26 alone.
That FY26 profit leap is the crux — and the main caution. PAT margin expanded from 2.90% in FY25 to 5.44% in FY26, and RoCE surged to 52.08% (from 30.60%). For a wholesale gold-jewellery business, where margins are structurally thin, a doubling of net margin in the pre-IPO year is a surprise that raises questions over sustainability.
The company reported an average EPS of about Rs 8.54 and an average RoNW of 45.26% over three fiscals. On book value, the issue is priced at a P/BV of 6.10 on the March 31, 2026 NAV of Rs 29.03, easing to 3.49x on the post-IPO NAV of Rs 50.77 at the upper cap.
On recent average performance, the source note views the issue as greedily priced — while Anand Rathi, anchoring to FY26, sees it as fairly priced; the gap between those two views is essentially a bet on whether the FY26 margin holds. The company has no dividend history but adopted a dividend policy in November 2025.
Peer Comparison
| Company | EPS (Rs) | P/E | RoNW (%) | NAV (Rs) | Income (Rs cr) |
|---|---|---|---|---|---|
| Sky Gold and Diamonds | 13.97 | 57.56 | 23.88 | 72.02 | 4,708.38 |
| Shanti Gold International | 21.22 | 12.72 | 37.34 | 83.00 | 2,018.71 |
| Shringar House of Mangalsutra | 13.55 | 17.02 | 26.29 | 70.29 | 2,245.82 |
| RBZ Jewellers | 13.70 | 10.08 | 20.11 | 74.96 | 636.48 |
| Khazanchi Jewellers | 36.10 | 22.22 | 32.45 | 129.14 | 2,049.22 |
The offer document lists Sky Gold, Shanti Gold, Shringar House of Mangalsutra, RBZ Jewellers and Khazanchi Jewellers as peers, trading at P/Es of roughly 10–58x (as of August 28, 2026). They differ in scale, product mix and region, so the comparison isn’t strictly apples-to-apples — but on the FY26 multiple DJL sits mid-pack, and reviewers note it reported the highest RoE and RoCE in its FY26 peer set, reflecting superior capital efficiency.
According to a note by Anand Rathi Research, “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 ₹17,014 million, 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, we assign a ‘Subscribe for Long Term’ rating for the issue.”
Merchant Banker Track Record
The two BRLMs — Emkay Global Financial Services and Valmiki Leela Capital — have collectively handled 4 IPOs over the last three fiscals, of which 2 closed below their issue price on listing day. That is a mixed record and offers no strong statistical edge.
Risks to Consider
Margin sustainability is the headline risk. PAT margin doubling to 5.44% in FY26, in a structurally thin-margin wholesale gold business, is a surprise that raises real questions over whether the recent profitability can persist — and much of the valuation case rests on it holding.
Gold-price and working-capital exposure is structural. As Anand Rathi notes, the business remains exposed to fluctuations in gold prices and carries significant working-capital requirements — reflected in the Rs 215 crore of fresh proceeds earmarked entirely for inventory and procurement.
Dependence on outsourced karigars is a key operational risk. The entire manufacturing runs through a network of 41 karigars, so any disruption to that outsourced base could hit supply and delivery.
Customer concentration and B2B dependence apply. The model relies on a set of large retail-chain and standalone-store customers, and DJL doesn’t sell directly to consumers — so the loss of, or reduced orders from, a major client could hit revenue.
Intense competition in a fragmented industry is inherent — the jewellery wholesale space is crowded and competitive, which can pressure margins and making charges.