The last day of October, and the Indian IPO pipeline continues to run hot as Nityas Gems & Jewellery’s book-build issue of Rs 108 crore is set to open today for public bidding. The issue price band has been set at Rs 70 to Rs 75, and trackers have reported a stable grey market premium for its stock.
Here are all the details investors should know about the issue:
Nityas Gems & Jewellery IPO: Offer size and utilisation of proceeds
The jewellery manufacturer’s IPO is entirely a Rs 108.35 crore fresh issue of 1.44 crore equity shares, of face value Rs 5 each. The issue is being managed by Choice Capital Advisors, and Bigashare Services Pvt. has been appointed as the registrar to the offer.
Of the total float, Nityas Gems will deploy Rs 70 crore towards funding its working capital expenditure, while the remaining amount will be utilised for general corporate purposes.
Nityas Gems & Jewellery IPO: Lot size
Retail investors need to bid for a minimum of one lot, comprising 200 shares, reflecting a transaction of Rs 15,000, in order to apply for the IPO. The upper cap for retail applicants has been fixed at 13 lots, while small high-net-worth individuals need to bid for a minimum of 14 and a maximum of 66 lots.
As for Big HNIs, the lower limit stands at 67 lots, equating to an investment of Rs 10,05,000.
Nityas Gems & Jewellery IPO: Grey market activity
As per the latest update, shares of Nityas Gems were trading in the unlisted markets at a premium of Rs 5 or 6.67%, suggesting a likely listing price of Rs 80, based on the upper end of the price band. This reflects a profit of Rs 1,000 per lot.
However, investors must know that GMP is not a regulated method to determine the listing price, is highly vulnerable to market manipulation, and fluctuates based on market mood and sentiment.
Nityas Gems & Jewellery IPO: Brokerage commentary
Giving the IPO a ‘Subscribe for Long Term’ rating, the Anand Rathi Research Team, in a report, said, “At the upper price band, the company is valued at 19.4x FY26 P/E and 14.8x FY26 EV/EBITDA, implying a market capitalization of Rs 431.9crore, making the valuation appear fully priced. ”
It added that with Nitya Gems’ exposure to the lab-grown diamond jewellery segment, integrated B2B–D2C model and in-house manufacturing capabilities, investors should monitor execution and the scalability of its D2C expansion.
Nityas Gems & Jewellery IPO: Subscription timeline
The jewellery designer company will close its bidding window on October 5, and its share allotment process is likely to be completed by October 6. Bidders are expected to be credited with their shares and requisite refunds by October 7. Nityas Gems & Jewellery will list on the domestic stock exchanges with a tentative listing date fixed as October 8.