Deepa Jewellers opens Rs 460 crore IPO at Rs 168-177 band

The Development

Deepa Jewellers Limited opened its initial public offering for subscription on Tuesday, September 1, 2026, at a price band of Rs 168 to Rs 177 per share of face value Rs 2, per National Stock Exchange data. The offer comprises a fresh issue of shares aggregating up to Rs 2,500 million (Rs 250 crore) and an offer for sale of up to 11,848,340 equity shares by the promoter selling shareholders, per the red herring prospectus filed with SEBI and dated August 25, 2026. The offer aggregates to about Rs 459.72 crore at the upper end of the band, per The Economic Times.

The three-day book is scheduled to close on Thursday, September 3, 2026, with the anchor bidding date having fallen on Monday, August 31. As of the latest exchange update on the opening day, the offer was subscribed 0.66 times overall, per NSE bid data, with the retail individual investors portion at 1.12 times, the non-institutional investors category at 0.45 times and the qualified institutional buyers portion largely unfilled at that point.

The Hyderabad-based company's offer was surfaced through coverage on The Economic Times IPO desk. The shares are proposed to list on both the BSE and the NSE, with the BSE as the designated stock exchange.

The Company

Deepa Jewellers describes itself in the RHP, citing the CRISIL Report, as "an organized B2B designer, processor and supplier of hallmarked gold jewellery", with operations primarily in Telangana, Karnataka, Andhra Pradesh, Tamil Nadu and Kerala. The company discloses that it designs jewellery in-house and has it manufactured through an outsourced model supported by a network of 41 karigars, to whom it supplies gold, alloys and stones and from whom it receives finished, hallmarked ornaments. Its products include vaddanam (waist belts), CNC machine-cut bangles, kada, armlets and traditional neck pieces, sold to businesses rather than end customers.

As of July 31, 2026, the company served 373 customers, comprising 47 jewellery retail chains and 326 standalone stores, per the RHP, and it operates in a single reportable segment. On financials, the offer document reports revenue from operations of Rs 19,266.76 million in Fiscal 2026, up from Rs 13,970.10 million in Fiscal 2025 and Rs 10,245.68 million in Fiscal 2024. Profit after tax was Rs 1,047.88 million in Fiscal 2026, against Rs 405.80 million and Rs 243.47 million in the two preceding years. The company discloses an EBITDA margin of 7.60 per cent, a return on net worth of 56.45 per cent and a debt-to-equity ratio of 0.47 times for Fiscal 2026. The promoters are Ashish Agarwal, Seema Agarwal and Dev Agarwal.

The Offer Structure

The offer combines a fresh issue of up to Rs 2,500 million (Rs 250 crore) with an offer for sale of up to 11,848,340 equity shares, the RHP states. Under the offer for sale, promoter selling shareholders Ashish Agarwal and Seema Agarwal are each offering up to 5,924,170 shares; proceeds from the offer for sale accrue to them rather than to the company. The price band is Rs 168 to Rs 177 per share, per NSE, and the minimum application is one lot as fixed in the price band advertisement. The anchor bidding date was August 31, 2026, the offer opened on September 1 and closes on September 3, with the UPI mandate end time stated as 5 p.m. on the closing day.

On the use of the fresh proceeds, the RHP lists the funding of long-term working capital requirements towards procurement, maintenance and scaling up of inventory, estimated at Rs 2,150 million, and general corporate purposes, which the document states shall not exceed 25 per cent of the gross proceeds. The book-running lead managers are Emkay Global Financial Services and Valmiki Leela Capital, and the registrar is Bigshare Services. Readers working through the arithmetic of an allotment can use Oquilia's lumpsum calculator or CAGR calculator, and prior coverage sits on the /news desk.

Risk Factors

The RHP sets out ten internal risk factors, and the following are among them. The company discloses customer concentration: its top 10 customers accounted for 64.67 per cent of revenue from operations in Fiscal 2026, and any decision by these customers to reduce or terminate business could significantly affect operations. It also flags product concentration, noting that vaddanam and CNC machine-cut bangles together made up the bulk of Fiscal 2026 revenue, at 41.85 per cent and 30.87 per cent respectively.

Among the risk factors the company discloses is heavy regional concentration, with Southern India contributing 94.37 per cent of total revenue in Fiscal 2026. The RHP lists dependence on the timely procurement of gold bullion, whose price and availability turn on factors beyond the company's control, and reliance on third-party karigars with whom it has not entered formal agreements in some cases. The document also discloses that the company experienced negative cash flows from operating activities in previous periods and cannot assure that this will not recur.

What Happens Next

With the three-day subscription window running to September 3, the standard mechanics from here move to the finalisation of the basis of allotment, followed by refunds and the unblocking of application amounts for unsuccessful or partially successful bidders through the ASBA and UPI framework. The registrar, Bigshare Services, processes the allotment, which is then reflected in the exchange and depository records.

Listing on the BSE and NSE follows the allotment, at a price determined by trading on the debut, which may be above, at, or below the issue price. The figures cited above are drawn from the exchange record as of the opening day and from the offer document; they describe process and demand as recorded, not any prediction of the eventual listing outcome.

FAQ

What is the price band and issue size?

The price band is Rs 168 to Rs 177 per share of face value Rs 2, per NSE data. The offer combines a fresh issue of up to Rs 2,500 million (Rs 250 crore) with an offer for sale of up to 11,848,340 shares, aggregating to about Rs 459.72 crore at the upper band, per the RHP dated August 25, 2026 and The Economic Times.

When does the offer open and close?

The anchor bidding date was August 31, 2026. The offer opened on September 1 and is scheduled to close on September 3, 2026, with the UPI mandate end time stated as 5 p.m. on the closing day, per the RHP.

What are the objects of the offer?

Per the RHP, the fresh proceeds are proposed to fund long-term working capital requirements towards procurement, maintenance and scaling up of inventory, estimated at Rs 2,150 million, and general corporate purposes capped at 25 per cent of gross proceeds. Offer-for-sale proceeds go to the selling shareholders.

Where can I read the RHP?

The red herring prospectus is available on SEBI's website and on the websites of the NSE and the BSE, as well as the company and the book-running lead managers. The RHP, including the complete risk-factors section beginning on page 20, is the document to read directly.

Should I apply for this IPO?

Oquilia does not make recommendations. This report is informational and is not investment advice or a recommendation to subscribe. The RHP, including the complete risk-factors section, is available on SEBI's website and the exchanges - read it directly before making any decision.

This report is based on the red herring prospectus filed with SEBI and subscription data from the NSE. It was surfaced via coverage in The Economic Times.