Deepa Jewellers sets Rs 168-177 band for Rs 460 crore IPO

The Development

Deepa Jewellers Limited, a Hyderabad-based business-to-business gold jewellery processor, has fixed the price band for its initial public offering at Rs 168 to Rs 177 per equity share of face value Rs 2, ahead of a three-day subscription window. Per the red herring prospectus dated 25 August 2026 filed with SEBI, the offer combines a fresh issue and an offer for sale, aggregating around Rs 459.72 crore at the upper end of the band, a figure reported by The Economic Times.

Per the RHP's bid schedule, the anchor investor allocation is set for Monday, 31 August 2026, with the issue opening on Tuesday, 1 September and closing on Thursday, 3 September 2026. The equity shares are proposed to be listed on the BSE and the National Stock Exchange of India, with BSE named as the designated stock exchange. This places the offer at the price-band-and-dates stage of the primary-market pipeline: the RHP is the legally operative offer document, and the terms are now fixed for prospective applicants.

The Company

Deepa Jewellers describes itself in the RHP as an organised B2B designer, processor and supplier of hallmarked gold jewellery, primarily operating in Telangana, Karnataka, Andhra Pradesh, Tamil Nadu and Kerala. The company discloses that it designs jewellery in-house and gets it manufactured through an outsourced model supported by a network of 41 karigars, rather than selling directly to end customers.

As of 31 July 2026, the company discloses a customer base of 373, comprising 47 jewellery retail chains and 326 standalone stores, and a presence across 13 states and one union territory. The promoters are Ashish Agarwal, Seema Agarwal and Dev Agarwal.

On financials, the RHP reports revenue from operations of Rs 19,266.76 million (about Rs 1,926.68 crore) for the financial year ended 31 March 2026, up from Rs 13,970.10 million in FY25 and Rs 10,245.68 million in FY24. Profit after tax for FY26 was Rs 1,047.88 million (about Rs 104.79 crore), against Rs 405.80 million in FY25 and Rs 243.47 million in FY24, per the restated financial information.

The Offer Structure

Per the RHP, the fresh issue aggregates up to Rs 2,500.00 million (Rs 250 crore), while the offer for sale is of up to 11,848,340 equity shares. The two selling shareholders are the promoters Ashish Agarwal and Seema Agarwal, each offering up to 5,924,170 equity shares. At the Rs 177 cap price, the fresh issue and offer for sale together work out to about Rs 459.72 crore. The minimum application is in the market lot specified in the RHP and the exchange bid details.

The stated objects of the fresh issue are to fund long-term working capital requirements of Rs 2,150.00 million (Rs 215 crore) towards procurement, maintenance and scaling up of inventory, with the balance for general corporate purposes, which the RHP caps at 25% of gross proceeds. The book-running lead managers are Emkay Global Financial Services Limited and Valmiki Leela Capital Private Limited, and the registrar to the offer is Bigshare Services Private Limited. Readers working through the arithmetic of a hypothetical allotment can use Oquilia's lumpsum calculator or CAGR calculator; prior primary-market coverage is on the Oquilia news desk.

Risk Factors

The RHP sets out the company's own risk factors, and several concern concentration. Among the risks the company discloses, its top 10 customers accounted for 64.67% of revenue from operations in FY26, so a decision by these customers to reduce or terminate business could significantly affect operations.

Geographic concentration is a further disclosed risk, with the RHP stating that revenue from Southern India was 94.37% of total revenue in FY26. The document also flags dependence on gold bullion as the key raw material, noting prices and availability depend on factors beyond the company's control and the absence of hedging facilities, and that its top 10 suppliers accounted for 91.81% of total purchases in FY26 without long-term contracts. The company further discloses that it depends on third-party karigars, with whom it has not entered into formal agreements in some cases, and that it has experienced negative cash flows from operating activities in previous periods.

What Happens Next

With the band fixed, the standard mechanics run from here. The anchor investor book is scheduled for 31 August 2026, after which the three-day subscription window opens on 1 September and closes on 3 September, with the UPI mandate cut-off at 5:00 PM on the closing date, per the RHP.

After the issue closes, the basis of allotment is finalised with the registrar and the exchanges, shares are credited to the demat accounts of successful applicants, and amounts blocked under the ASBA and UPI process are unblocked for unsuccessful bids. Listing on the BSE and NSE is expected on 8 September 2026, per the reported timetable. These are process steps stated as they appear on the record, not a forecast of demand or of the listing price.

FAQ

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.

What is the price band and issue size?

The price band is fixed at Rs 168 to Rs 177 per equity share of face value Rs 2. At the upper end, the fresh issue of Rs 250 crore and the offer for sale of up to 11,848,340 shares aggregate to about Rs 459.72 crore, per the RHP and the company's price-band announcement.

When does the issue open and close?

Per the RHP schedule, the anchor allocation is on 31 August 2026, the issue opens on 1 September 2026 and closes on 3 September 2026. Listing on the BSE and NSE is expected on 8 September 2026.

What are the objects of the offer?

The RHP states the fresh-issue net proceeds will fund long-term working capital of Rs 215 crore towards procurement, maintenance and scaling up of inventory, with the balance for general corporate purposes. Offer-for-sale proceeds go to the two promoter selling shareholders, not the company.

Where can I read the RHP?

The red herring prospectus and abridged prospectus are hosted on SEBI's website and on the BSE and NSE websites, as well as on the websites of the company and the book-running lead managers. The risk-factors section begins on page 20 of the RHP.

This report is based on the red herring prospectus filed with SEBI dated 25 August 2026. It was surfaced via coverage in The Economic Times.