Deepa Jewellers IPO listing: Shares make strong debut at ₹221 per share over the IPO price

Deepa Jewellers IPO listing: The stock listed at 25% premium over the IPO price of ₹177.AI Quick ReadDeepa Jewellers IPO listing: Deepa Jewellers share price made a strong debut in the Indian stock market on Tuesday, 8 September. The stock listed at 25% premium over the IPO price of ₹177.

Deepa Jewellers share price opened at ₹221 per share on NSE and ₹221.05 on BSE. This means that the Deepa Jewellers IPO listing delivered 25% gains to its IPO allottees.

The listing of Deepa Jewellers exceeded the market expectations. The GMP of Deepa Jewellers IPO was +23.5, ahead of listing, indicating an estimated listing price of ₹200.5 apiece, which is 13.28% higher than the IPO price.

Deepa Jewellers, an organised B2B designer, processor and supplier of hallmarked gold jewellery, opened its IPO for subscription on Tuesday, September 1, and closed the issue on Thursday, September 3.

The public offering received a strong response from investors, led by non-institutional investors (NIIs), whose reserved portion was subscribed 105.96 times. The qualified institutional buyers (QIBs) category was subscribed 37 times. The retail investor segment was subscribed 18.55 times. On the third and final day of bidding, the overall subscription for the Deepa Jewellers IPO stood at 43 times, according to NSE data.

Under the issue structure, up to 50% of the shares were reserved for QIBs, at least 15% for NIIs and a minimum of 35% for retail investors.

The price band for the Deepa Jewellers IPO was set at ₹168- ₹177 per equity share, with each share carrying a face value of ₹2. The mainboard issue had a lot size of 84 equity shares, with investors allowed to bid in multiples of 84 thereafter.

The IPO consisted of a fresh issue of equity shares worth up to ₹250 crore and an offer for sale (OFS) of more than 1.18 crore shares. The company intends to utilise the fresh issue proceeds primarily to meet its long-term working capital requirements, including the procurement, maintenance and expansion of inventory. Part of the funds will also be used for general corporate purposes.

Emkay Global Financial Services is serving as the book-running lead manager for the issue, while Bigshare Services Pvt. Ltd is the registrar.

Established in 2016, Deepa Jewellers operates as an organised B2B designer, processor and supplier of hallmarked gold jewellery. The company has a presence across Telangana, Karnataka, Andhra Pradesh, Tamil Nadu and Kerala.

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Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.

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