Deepa Jewellers IPO Day 2: GMP at 25%, subscription near 90% — Should you subscribe?

The Deepa Jewellers IPO has entered its second day of bidding, drawing decent investor interest. In the grey market, the issue is commanding a 25% premium, signalling upbeat investor sentiment and expectations of a strong listing gain.

On Day 1, the IPO was 87% subscribed, with investors bidding for shares against the 1.85 crore shares on offer. The retail segment was particularly encouraging, with Retail Individual Investors (RIIs) subscribing 1.38 times the 93.55 lakh shares reserved for them.

Priced in the Rs 168–177 per equity share range, the IPO aims to raise Rs 459.72 crore through a combination of a fresh issue and an offer for sale (OFS). The subscription window will remain open until September 3.


Of the total issue size, Rs 250 crore will come through the fresh issue, while the remaining Rs 209.72 crore will be raised through an OFS involving 1.18 crore shares.

The IPO will open on September 1, 2026, and close on September 3, 2026. The share allotment is expected to be finalized on September 4, while the company's shares are tentatively scheduled to list on both the NSE and BSE on September 8, 2026.

Investors can bid for a minimum of 84 equity shares, with subsequent bids required to be placed in multiples of 84 shares. At the upper end of the price band, the minimum investment works out to Rs 14,868, excluding applicable charges.

At the valuation front, the IPO's P/E multiple based on diluted FY26 earnings stands at 13.15 times at the floor price and 13.85 times at the cap price.

This is notably lower than the FY26 industry peer average P/E of 23.92 times, suggesting that Deepa Jewellers is being offered at a comparatively lower valuation than its industry peers.

The company has also reported a three-year weighted average Return on Net Worth (RoNW) of 45.26%, reflecting strong returns generated on shareholders' capital.

Emkay Global Financial Services Ltd. is the book-running lead manager for the issue, while Bigshare Services Pvt. Ltd. has been appointed as the registrar.

Deepa Jewellers IPO Subscription Status

The Deepa Jewellers IPO witnessed a positive response from investors on Day 1, with the overall issue subscribed 87% against the total offer of 1.85 crore shares.

• Retail Individual Investors (RIIs): The retail portion was subscribed 1.38 times against 93.55 lakh shares on offer.
• Non-Institutional Investors (NIIs): The NII portion was subscribed 63% against 40.09 lakh shares on offer.
• Qualified Institutional Buyers (QIBs): The QIB portion was subscribed 11% against 51.55 lakh shares on offer.

Deepa Jewellers IPO GMP Today

The Deepa Jewellers IPO GMP is currently reported at Rs 44 per share, indicating a 25% premium over the IPO's upper price band of Rs 177 per share. Based on the prevailing GMP, the estimated listing price is around Rs 221 per share (Rs 177 + Rs 44), suggesting a potential listing premium of approximately 25% over the upper issue price.

The Grey Market Premium (GMP) is an unofficial indicator of market sentiment and is not regulated or guaranteed. GMP can change rapidly depending on market conditions, investor sentiment and demand. The actual listing price may differ significantly from the price indicated by the GMP.

IPO Objects of the Issue

The Company proposes to utilise the Net Proceeds primarily to strengthen its working capital position. Of the total proceeds, Rs 215 crore is proposed to be allocated towards the procurement, maintenance and expansion of inventory, supporting the Company’s long-term growth and operational requirements.

The balance proceeds will be utilised for general corporate purposes, providing the Company with enhanced financial flexibility to pursue its strategic initiatives and meet its business requirements.

Financial Performance

Deepa Jewellers Ltd. reported a strong financial performance in FY26, with total income increasing 38% to Rs 1,927.73 crore from Rs 1,400.10 crore in FY25. The growth reflects a significant expansion in the Company’s overall business during the year.

Profitability improved at a considerably faster pace, with PAT rising 158% to Rs 104.79 crore from Rs 40.58 crore in FY25. The sharp increase in earnings underscores the Company’s improved profitability and stronger financial performance in FY26.

About Deepa Jewellers

Established in 2016, Deepa Jewellers Ltd. operates across the retail and wholesale jewellery segments, offering a wide range of gold and diamond jewellery in both traditional and contemporary designs. Its product portfolio includes bangles, necklaces, earrings, rings, waist belts, armlets, kadas and other customised ornaments.

The Company places emphasis on product purity, transparent pricing and customer trust, supported by its network of physical stores and distribution channels. As of July 31, 2026, its customer network spanned 13 states and 1 Union Territory and comprised 373 customers, including 47 jewellery retail chains and 326 standalone stores.

Deepa Jewellers offers 16 product categories across 110 SKUs. It also leverages its mobile application, Deepa Jewellers Limited, to showcase its jewellery collections and strengthen customer engagement and market reach.

Should you subscribe to the Deepa Jewellers IPO?

According to a report by SBI Securities, Deepa Jewellers Ltd. (DJL) is a Hyderabad-based B2B jewellery company engaged in the design and wholesale supply of traditional and machine-crafted gold jewellery to regional retailers and leading jewellery chains. The company has delivered strong financial growth, with Revenue, EBITDA and PAT recording CAGRs of 37.1%, 102.3% and 107.5%, respectively, during FY24–FY26.

To support its future expansion, DJL is setting up an in-house manufacturing facility spread across 6,696 sq. ft. in Hyderabad. The facility is expected to improve EBITDA margins, reduce lead times and enhance gold recovery efficiency. The company also follows a structured hedging framework to manage gold price volatility and protect margins. At the upper price band of Rs 177 per share, the issue is valued at a FY26 P/E multiple of 16.2x based on post-issue capital. SBI Securities recommends SUBSCRIBE to the issue for investors with a long-term investment horizon.

Master Capital Services also highlights the favorable industry backdrop. The Indian gems and jewellery sector is supported by strong gold demand, wedding and festive consumption, rising disposable incomes and increasing preference for organised retail. The Indian gems and jewellery retail market was valued at approximately Rs 12,887 billion in FY26 and is expected to grow at a 4–5% CAGR, reaching around Rs 15,100–15,500 billion by FY30.

The Indian gold jewellery retail market, valued at approximately Rs 10,619 billion in FY26, is expected to grow at a 12–14% CAGR between FY25 and FY30, reaching around Rs 12,000–12,500 billion by FY30. South India remains a key growth market, accounting for nearly 40% of India's jewellery retail industry, with the regional market expected to grow at a 6–7% CAGR through FY30. The South Indian B2B jewellery market is also projected to grow at 3–5% CAGR, supported by strong cultural affinity toward gold and increasing penetration of organised retail.

Against this backdrop, Deepa Jewellers appears well positioned to benefit from the growing demand for organised jewellery. Its B2B-focused business model, presence across key South Indian markets, established customer and karigar network, 15-member in-house design team, and expertise in processing and supplying hallmarked 22-karat gold jewellery, including Vardaman and CNC machine-cut bangles, provide it with several competitive strengths.

Overall, both SBI Securities and Master Capital Services view the IPO positively. Based on the company's strong historical growth, planned manufacturing expansion, industry tailwinds and reasonable valuation, long-term investors may consider subscribing to the Deepa Jewellers IPO. However, investors should also evaluate the company's risks, valuation and their own risk appetite before investing.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)