Deepa Jewellers IPO opened for subscription on September 1, 2026 and has shown strong market response with 0.87 times subscription as of Day 2, receiving bids for 1,60,34,172 equity shares against 1,85,20,085 shares on offer. The ₹459.72 crore book-build issue combines a fresh issue of about 1.41 crore shares to raise ₹250 crore and an offer for sale (OFS) of 1.18 crore shares for ₹209.72 crore. The subscription window remains open until Thursday, September 3, 2026, with share allotment scheduled for Friday, September 4, 2026. The shares are expected to list on BSE and NSE on Tuesday, September 8, 2026. The book-building issue has a price band between ₹168 and ₹177 per share, with investors required to apply for at least one lot of 84 shares, making the minimum investment ₹14,868 at the upper price band.
The grey market premium (GMP) has strengthened to ₹44, indicating shares are trading at a premium of ₹44, which translates to a potential listing price of ₹221 based on the upper price band. This represents a 24.86% premium over the IPO price of ₹177, suggesting strong investor confidence in the company's growth prospects. The grey market premium reflects the market's positive sentiment toward Deepa Jewellers and its organized B2B jewellery operations in southern India.
The IPO has witnessed strong retail investor interest with 1.38 times subscription in the retail individual investor (RII) segment, while the non-institutional investor (NII) category was subscribed 0.63 times and the Qualified Institutional Buyers (QIB) portion received 0.11 times bids as of Day 2. This retail-led subscription pattern indicates strong investor confidence in the company's growth prospects and market position in the organized B2B jewellery segment. The basis of allotment is tentatively scheduled for Friday, September 4, 2026, with refunds expected on Monday, September 7, 2026, and shares likely to be credited to demat accounts on the same day.
Ahead of the public issue, Deepa Jewellers raised ₹137.91 crore from 14 anchor investors, with the company allotting 77.91 lakh shares to anchor investors at the upper end of the price band. The anchor book included prominent investors such as Nomura Singapore, Ashoka India Equity Investment Trust Plc and Citigroup. Motilal Oswal Finvest emerged as the largest investor, picking up 20.3 lakh shares worth ₹35.95 crore. WhiteOak Capital and 360 ONE each acquired 5.08 lakh shares, with each investment amounting to nearly ₹9 crore. Of the total anchor allocation, 14.96 lakh shares were allotted to domestic mutual funds, including Tata Asset Management Company and Unifi Mutual Fund. Emkay Global Financial Services and Valmiki Leela Capital are acting as the merchant bankers of the IPO, while Bigshare Services Private is the registrar.
Multiple brokerages have maintained a positive view on the Deepa Jewellers IPO, citing its strong earnings growth, healthy return ratios and attractive valuation compared with listed peers. Swastika Investmart noted that the issue is priced at a meaningful discount to peers, with the company valued at around 16x P/E compared to the peer average of nearly 24x. Despite the lower valuation, Deepa Jewellers reported the highest return on net worth (RoNW) among its listed peers at 56.45%. However, the brokerage highlighted risks including top 10 customers contributing 64.67% of FY26 revenue without long-term contracts and exposure to regional jewellery design preferences. SBICAP Securities recommended a 'Subscribe' rating for investors with long-term horizons, highlighting the company's structured hedging framework and FY26 P/E multiple of 16.2x at the upper price band. Canara Bank Securities also recommended 'Subscribe' for both long-term investors, noting the company's revenue, EBITDA and PAT CAGRs of 37%, 102.26% and 107.46% respectively between FY24 and FY26.
