Deepa Jewellers IPO kicks-off: Should you apply or avoid? Price band, reviews, latest GMP & more

The initial public offering (IPO) of Hyderabad-based Deepa Jewellers opens for subscription on Tuesday, September 01. The company shall be offering its shares in the price band of Rs 168-177 apiece. Investors can apply for a minimum of 84 equity shares and its multiples thereafter. The issue can be subscribed until September 03, Thursday.

The Rs 460 crore IPO of Deepa Jewellers included a fresh share sale of Rs 250 crore and offer-for-sale (OFS) of up to 1,18,48,340 equity shares worth Rs 210 crore. The net proceeds from the issue shall be utilized towards funding long-term working capital requirements towards procurement, maintenance and scaling up of inventory and general corporate purposes.

Incorporated in 2016, Deepa Jewellers is engaged in the retail and wholesale trading of gold and diamond jewellery, offering a wide range of designs catering to diverse customer preferences. It focuses on sourcing, designing, and selling jewellery products including rings, necklaces, earrings, bangles and customized ornaments crafted with quality materials and skilled workmanship.

Ahead of its IPO, Deepa Jewellers raised Rs 137.91 crore from 15 anchor investors as it allocated 77,91,749 equity shares at Rs 177 apeice. Its anchor book included names like Motilal Oswal Finvest, Whiteoak Capital Equity Fund, 360 One Equity Opportunities Fund, Unifi MF, CP Capital, LRSD Securities, CitiGroup Global Markets, Maybank Securities, Tata MF, Nomura Singapore and more.

Deepa Jewellers reported a net profit of 104.79 crore with a revenue of Rs 1,927.73 crore for the financial year ended on March 31, 2026. The company clocked a net profit at Rs 40.58 crore with a revenue of Rs 1,400.10 crore for the fiscal year 2024-26. At the current valuations, it is commanding a market capitalization of little more than Rs 1,700 crore.

The company has reserved 50 per cent of the net issue for qualified institutional bidders (QIBs), while non-institutional investors will get 15 per cent of allocation. Retail investors have a 35 per cent quota in the IPO. Last heard, Deepa Jewellers was commanding a grey market premium (GMP) of Rs 55 apeice, suggesting a listing pop of 31 per cent for the investors.

Emkay Global Financial Services and Valmiki Leela Capital are the book running lead managers of Deepa Jewellers IPO and Bigshare Services is the registrar of the issue. Shares of the company shall be listed on both BSE and NSE on Thursday, September 08. Here's what a host of brokerage firms say about the IPO of Deepa Jewellers:

SBI Securities
Rating: Subscribe
Deepa Jewellers has recorded revenue, EBITDA and PAT CAGR of 37.1 per cent, 102.3 per cent and 107.5 per cent, respectively over the FY24-FY26 period. To support growth, it is setting up an in-house manufacturing facility spanning across 6,696 sq ft in Hyderabad, which is expected to expand EBITDA margin, reduce lead times, and optimize gold recovery efficiency, said SBI Securities.

"The company employs a structured hedging framework to mitigate gold price volatility and protect margin. The issue is valued at FY26 P/E multiple of 16.2 times based on post-issue capital. We recommend investors to 'subscribe' to the issue for a long-term investment horizon," it added.

Swastika Investmart
Rating: Neutral
The issue is priced at a meaningful discount to peer average P/E, despite posting the highest RoNW at 56.45 per cent among all listed peers. Its top-10 customers contribute 64.67 per cent of FY26 revenue with no long-term contracts. Vaddanam and CNC bangles together drive the bulk of revenue — exposure to shifts in regional jewellery design preferences, said Swastika Investmart.

"Customer payments are taking longer, with receivables rising sharply and the operating cycle reaching 53 days, increasing the company’s need for cash. Investors may consider the issue for listing gains considering strong growth, improving profitability and attractive peer valuation, however, high customer concentration and thin margins warrant caution," it added with a 'neutral' view.

Master Capital Services
Rating: Subscribe for long-term
"Deepa Jewellers is positioned to benefit from rising organised jewellery demand, supported by its B2B 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. Investors may consider the IPO as a long-term opportunity," said Master Capital.

SMIFS
Rating: Subscribe
Deepa Jewellers reported the highest ROE and ROCE among its defined peer set in FY26, reflecting superior capital efficiency and profitability, said SMIFS. "Considering its strong market positioning, scalable business model and favourable industry tailwinds, we recommend subscribing to the issue with a long-term investment horizon," it said.

BP Equities
Rating: Subscribe
The business remains exposed to concentration in its key products and domestic geography. Deepa Jewellers is valued at 13.9 times its diluted FY26 EPS of Rs 12.7, compared with the peer average of 24 times. The lower than peer valuation, coupled with the company’s strong earnings growth profile, provides room for valuation re-rating, we assign a 'subscribe' rating, said BP Equities.

Ventura Securities
Rating: Subscribe
Deepa Jewellers offers strong growth, with FY26 revenue and PAT rising sharply, alongside robust ROE and ROCE and improving leverage. Its established South India presence and specialised jewellery portfolio are key positives, said Ventura with 'subscribe' tag. However, high customer, geographic concentration, outsourced manufacturing, and significant working-capital needs remain key risks.