Jewellery manufacturer Deepa Jewellers’ Rs 460 crore fresh issue saw healthy investor participation on its first day of bidding. By the end of the first day, the issue was subscribed 0.86x, receiving bids for more than 1.59 crore shares against its ask of 1.85 crore shares.
The company had raised Rs 137.91 crore in the anchor bidding round, seeing participation from big names like Motilal Oswal, White Oak Capital Mutual Fund, 360 One, Tata Mutual Fund and other entities. The share price band for the issue has been fixed at Rs 168 to Rs 177.
Deepa Jewellers IPO: Offer size and lead managers
The Telangana-based firm aims to raise Rs 459.72 crore from the Indian primary markets. Its issue comprises a fresh component of Rs 250 crore, which it will raise via the issuance of 1.41 crore equity shares.
The remaining Rs 209.72 crore will be raised through the offer-for-sale route as investors will offload 1.18 crore equity shares of Rs 2 each.
Emkay Global Financial Services and Valmiki Leela Capital are acting as the merchant bankers of the IPO, while Bigshare Services Private is the registrar of the offer.
Deepa Jewellers IPO: Day 1 subscription
Overall, the jewellery designer’s IPO was subscribed 0.86x on the first day of bidding, with the retail investor category seeing active participation with an oversubscription of 1.38x. Its non-institutional investors segment was subscribed 0.63x, while the qualified institutional buyers portion achieved a subscription of 0.11x on the first day.
| Investor Category | Subscription (Day 1) |
| Qualified Institutional Buyers (QIBs) | 0.11x |
| Non-Institutional Investors (NIIs) | 0.63x |
| Retail Individual Investors (RIIs) | 1.38x |
| Overall | 0.86x |
Deepa Jewellers IPO: Lot Size
Retail investors can bid for a minimum of one lot comprising 84 shares, equating to an investment of Rs 14,868, while the maximum number of lots retail applicants can bid for is 13. For small high-net-worth investors, the minimum lot size stands at 14, and the maximum is 67, and for big HNIs, the lower cap is fixed at 68 lots.
Deepa Jewellers IPO: GMP at 24%
In the grey markets, the shares of Deepa Jewellers are trading at a premium of Rs 43, suggesting a listing price of Rs 220, based on the upper end of the price band. This reflects gains of 24.3% per share and estimates a profit of Rs 3,612 per lot.
However, it is important to note that GMP is an unregulated metric to guess the listing price; it is vulnerable to price manipulation and fluctuates based on market conditions.
Deepa Jewellers IPO: Subscription timeline
The company opened its IPO for public bidding on September 1 and is likely to wrap up the process by September 3. Its share allotment process is expected to be completed by September 4, and investors are likely to be credited with their shares and the requisite refunds by September 7.
Deepa Jewellers is expected to list on the bourses on September 8.