Ahead of IPO, Deepa Jewellers raises Rs 138 cr from anchor investors

Deepa Jewellers Ltd on Monday raised Rs 138 crore from anchor investors including Motilal Oswal Finvest and WhiteOak Capital Mutual Fund, ahead of its initial public offering (IPO).

The company allotted 77.92 lakh equity shares at Rs 177 apiece to anchor investors, according to a circular uploaded on the BSE website.

Apart from Motilal Oswal Finvest and WhiteOak Capital Mutual Fund, other participants in the anchor round included Tata Mutual Fund, CP Capital Ltd, LRSD Securities, Maybank Securities Pte Ltd and Citi Group Global Markets Mauritius and Nomura Singapore.


The Rs 460-crore public issue will open for subscription on September 1 and close on September 3. The IPO price band has been set at Rs 168-177 per share.

The IPO comprises a fresh issue of equity shares worth up to Rs 250 crore and an offer-for-sale (OFS) of over 1.18 crore shares.

At the upper end of the price band, the issue size will be around Rs 460 crore. The post-issue implied market capitalisation is estimated at around Rs 1,700 crore at the higher end.

Proceeds from its fresh issuance will be utilised for funding long-term working capital requirements towards procurement, maintenance and scaling up of inventory by the company and general corporate purposes.

Incorporated in 2016, the company is an organised B2B designer, processor and supplier of hallmarked gold jewellery. It primarily operates in Telangana, Karnataka, Andhra Pradesh, Tamil Nadu and Kerala.

The company designs, processes and sells a wide range of jewellery, operating through an outsourced manufacturing model, supported by a network of karigars.

The equity shares are proposed to be listed on both the BSE and NSE on September 8.