Lab-grown diamond maker Anjali Labtech has filed updated draft papers for an initial public offering of up to ₹1,225 crore, comprising a fresh issue of shares worth up to ₹925 crore and an offer for sale (OFS) of up to ₹300 crore. According to the latest draft Red Herring Prospectus (DRHP) filed on Thursday, the company may also consider raising up to ₹185 crore in a pre-IPO placement round. If this placement is undertaken, the fresh issue size will be reduced accordingly. The shares will have a face value of ₹5 each, with the OFS offered by promoters Shilpaben Rajanibhai Radadiya (₹106.25 crore), Nehaben Sandipkumar Radadiya (₹75 crore), and Madhubhai Samujbhai Radadiya (₹118.75 crore). As reported by The Economic Times, the company plans to use net proceeds from the fresh issue to fund capital expenditure for manufacturing and the captive installation of MPCVD machines to facilitate in-house growing of rough lab-grown diamonds, with some funds also allocated for paying down debt and general corporate purposes. IIFL Capital Services Ltd and Axis Capital Ltd have been appointed as book-running lead managers to the public issue.
As reported by The Economic Times, Anjali Labtech plans to use net proceeds from the fresh issue to fund capital expenditure for manufacturing and the captive installation of MPCVD machines to facilitate in-house growing of rough lab-grown diamonds. MPCVD, or microwave plasma chemical vapour deposition, is technology used to grow rough lab-grown diamonds, allowing the company to increase in-house production. The company will also use proceeds to construct and develop Anjali Corporate House at Moje Kosmada in Surat, Gujarat. The company was incorporated in 2021 and has identified its limited operating history as a key risk in its draft prospectus. Incorporated in 2021, Anjali LabTech is a vertically integrated Indian player in the Lab-Grown Diamond industry with capabilities stretching across the entire value chain, supported by seven manufacturing facilities in Surat - a major hub in Gujarat that dominates the diamond sector, accounting for over 90 per cent of the country's LGD production.
According to CNBC TV18, Anjali Labtech's profit after tax increased to ₹200.92 crore in FY26 from ₹146.79 crore in FY25 and ₹90.06 crore in FY24. However, the company cautioned that historical financial performance should not indicate future results. The company has significant exposure to MPCVD machine sales, which accounted for 31.84% of revenue from operations in FY26, up from 29.31% in FY25 but down from 53.74% in FY24. As reported by The Economic Times, the company also flagged that a slowdown in demand for MPCVD machines could affect the company's revenue, cash flows and overall financial performance.
As reported by CNBC TV18, Anjali Labtech faces several key risks including customer concentration, with the top 10 customers accounting for 59.37% of revenue in FY26, compared with 60.06% in FY25 and 69.80% in FY24. The domestic market contributed 65.89% of revenue in FY26, while exports accounted for 34.11%, down from 48.06% in FY25 and 28.11% in FY24. The company has flagged potential US tariffs and trade measures affecting diamond products sourced from India as a risk to business competitiveness. Other risks include changing consumer perceptions of lab-grown diamonds, seasonal demand fluctuations, and the company's ability to meet substantial capital expenditure requirements. As reported by The Economic Times, Anjali LabTech also noted that it does not have any directly comparable listed peers in India or globally, which could make it harder for investors to compare its valuation with other companies.
