Ahead of the listing, the grey market sentiment had pointed to a positive debut. The IPO was commanding a grey market premium (GMP) of around 14%, indicating expectations of a healthy listing gain. However, GMP is only an unofficial indicator of market sentiment and does not guarantee the actual listing price.
The IPO was subscribed 42.61 times by the close of bidding on September 3, according to NSE data. Investors placed bids for 78.91 crore equity shares against 1.85 crore shares on offer. The non-institutional investor (NII) portion was subscribed 105.96 times, while the qualified institutional buyer (QIB) quota saw 37 times subscription. The retail portion was subscribed 18.55 times.
The IPO had a price band of ₹168-177 per share and comprised a fresh issue of ₹250 crore and an offer-for-sale (OFS) of up to 1.18 crore shares worth ₹209.72 crore.
Ahead of the issue opening, Deepa Jewellers raised ₹137.91 crore from 14 anchor investors. The company allotted 77.91 lakh shares to anchor investors at ₹177 per share.
Motilal Oswal Finvest was the largest investor in the anchor book, acquiring around 20.3 lakh shares worth ₹35.95 crore. WhiteOak Capital and 360 ONE each acquired around 5.08 lakh shares, with each investment worth nearly ₹9 crore.
Other anchor investors included Nomura Singapore, Ashoka India Equity Investment Trust and Citigroup. Domestic mutual funds, including Tata Asset Management Company and Unifi Mutual Fund, were allotted around 14.96 lakh shares.
Deepa Jewellers plans to use the majority of the fresh issue proceeds to fund its working capital requirements. Around ₹215 crore has been earmarked for long-term working capital, including the procurement, maintenance and scaling up of jewellery inventory. The remaining proceeds will be used for general corporate purposes.
The company operates as a business-to-business (B2B) jewellery supplier, designing, processing and supplying 22-karat hallmarked gold jewellery to retail chains and standalone stores. It also undertakes job work and trades in silver ornaments, gold jewellery of other purities, precious stones and gold bullion.
The IPO had a lot size of 84 shares, meaning retail investors were required to invest a minimum of ₹14,868 at the upper price band of ₹177. The issue opened on September 1 and closed on September 3.
Incorporated in 2016, Deepa Jewellers primarily operates across Telangana, Karnataka, Andhra Pradesh, Tamil Nadu and Kerala. Its product portfolio includes traditional and contemporary gold jewellery such as bangles, necklaces, earrings, rings and customised ornaments.
