Deepa Jewellers Dazzles On Dalal Street, Shares Sparkle Nearly 25% in Market Debut

Mumbai: Deepa Jewellers Ltd made a strong stock market debut on Tuesday, September 8, with its shares listing at a premium of nearly 25% over the IPO issue price of Rs 177.

The Deepa Jewellers share price opened at Rs 221.05 on the BSE, marking a gain of 24.88% from the issue price. On the NSE, the stock debuted at Rs 221, up 24.85%.

Following the listing, the jewellery company's market capitalisation stood at around Rs 1,920.56 crore.

Deepa Jewellers IPO Subscribed 43 Times

The strong listing followed robust investor demand for the Deepa Jewellers IPO, which was subscribed nearly 43 times on the final day of bidding.

Demand was seen across investor categories, with institutional investors showing particularly strong interest in the public issue.

The Rs 460 crore IPO was offered at a price band of Rs 168-Rs 177 per share.

The public issue consisted of a fresh issue of equity shares worth up to Rs 250 crore and an offer for sale (OFS) of more than 1.18 crore shares.

How Will Deepa Jewellers Use IPO Funds?

Deepa Jewellers plans to use proceeds from the fresh issue primarily to meet its long-term working capital requirements.

The funds will support the procurement, maintenance and expansion of jewellery inventory. A portion will also be used for general corporate purposes.

What Does Deepa Jewellers Do?

Incorporated in 2016, Deepa Jewellers is an organised business-to-business gold jewellery company engaged in designing, processing and supplying hallmarked gold jewellery.

The company primarily operates across five southern states — Telangana, Karnataka, Andhra Pradesh, Tamil Nadu and Kerala.

Deepa Jewellers offers a wide range of jewellery products through an outsourced manufacturing model. Its operations are supported by a network of skilled 'karigars' involved in jewellery manufacturing and processing.

The strong listing premium follows heavy IPO subscription, giving the jewellery company a positive start on Dalal Street.