Deepa Jewellers IPO Day 3: GMP falls to 13%, issue booked 6.55x. Should you subscribe?

The Deepa Jewellers IPO has entered its third day of bidding, drawing decent investor interest. In the grey market, the issue is commanding a 13% premium, lower than around 25% on Wednesday, signalling slightly cautious investor sentiment.

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.


Deepa Jewellers IPO subscription status

The Deepa Jewellers IPO witnessed a positive response from investors on Day 3, with the overall issue subscribed 6.55% against the total offer of 1.85 crore shares.

Retail Individual Investors (RIIs): The retail portion was subscribed 7.27 times against 93.55 lakh shares on offer.

Non-Institutional Investors (NIIs): The NII portion was subscribed 12.63x against 40.09 lakh shares on offer.

Qualified Institutional Buyers (QIBs): The QIB portion was subscribed 48% against 51.55 lakh shares on offer.

Deepa Jewellers IPO GMP today

The Deepa Jewellers IPO GMP is currently reported at Rs 24 per share, indicating a 13.54% 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 201 per share (Rs 177 + Rs 24).

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.

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.

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.

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 says 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.

The share allotment is expected to be finalised on September 4, while the company's shares will debut on both the NSE and BSE on September 8, 2026.

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