Advit Jewels IPO

About Advit Jewels IPO

The IPO of Advit Jewels comprises a fresh issue with no offer for sale. The fresh issue aggregates up to 1,38,00,000 equity shares. The total issue size is pegged at TBA. It’s a 100% book-built issue. The price band is TBA. The IPO opens on TBA and closes on TBA.

The listing date is on TBA and the allotment date is TBA. The credit of shares to the Demat account will take place on TBA, while the initiation of refund will take place on TBA.

Advit Jewels is a manufacturer and seller of traditional and contemporary handcrafted fine jewellery, specialising in kundan, polki, diamond and studded pieces. The pieces are crafted using age-old techniques, but the company also incorporates modern design elements, ensuring each item is not only beautiful but also reflects a rich cultural heritage.

Objectives of Advit Jewels IPO

The company proposes to utilise the IPO proceeds for:

• Funding incremental working capital requirements
  
• Repayment/pre-payment, in full or in part, of certain outstanding borrowings
  
• General corporate purposes
  

Industry Outlook

India’s gems and jewelry (G&J) sector is truly distinctive in its meld of rich cultural heritage, artisanal craftsmanship, and economic significance. Officially, it contributes around 7% of India’s GDP and supports a workforce of over 4.5 million skilled and semi-skilled workers, according to the Government of India.

India’s gold jewellery consumption has displayed a steady decline over the past four years, moving from 610 tonnes in CY 2022, 575.8 tonnes in 2023, and further down to 563.4 tonnes in CY 2024. This translates into a cumulative drop of about 7.6% over the period, with a notable 2% decline between CY 2023 and CY 2024. The downward trend highlights how the market has been reshaped by both economic conditions and shifting consumer preferences, even though gold continues to hold strong cultural significance in India.

The gems and jewellery sector, a traditional mainstay of India’s exports, has been facing headwinds in recent years. Exports grew from USD 26.0 billion in FY 2021 to a peak of USD 39.1 billion in FY 2022, driven by pent-up demand in key markets such as the United States and Europe, coupled with higher luxury spending as economies reopened post-pandemic. However, this momentum was not sustained, as exports declined to USD 37.9 billion in FY 2023 and further contracted to USD 32.7 billion in FY 2024.

Company Information

Advit Jewels is a manufacturer and seller of traditional and contemporary handcrafted fine jewellery, specialising in kundan, polki, diamond and studded pieces. The brand name “Rambhajo” finds its roots in a jewellery business established in 1921 by the late Shri Kishan Gilara in Jaipur. He started Rambhajo as a local brokerage and trading venture in the jewellery market. The brand name evolved steadily into a respected name in the jewellery manufacturing and retail space.

Strengths of Advit Jewels

• Organised manufacturing under one roof: Merging tradition with technology
  
• Design and innovation: Diversified product offering across customer segments
  
• Robust operational systems and risk mitigation framework
  
• Experienced leadership with proven execution capability
  
• Unwavering commitment to quality
  

Risks of Advit Jewels IPO

• The loss of one or more top 10 customers could adversely affect business, results of operations and financial condition
  
• Delay or disruption in supply from suppliers may adversely affect results of operations and financial condition
  
• Inability to manage growth rate may adversely affect results of operations
  
• High levels of inventory may adversely affect working capital, profitability, and financial condition
  
• Business is subject to seasonal fluctuations and any decline in sales during peak seasons may disproportionately impact results of operations
  
• Failure to retain or engage karigars may adversely impact business, results of operations and financial condition
  
• Non-availability or significant increase in the cost of gold, diamonds, and other precious or semi-precious stones could adversely impact business
  
• Inability to access adequate working capital loans on commercially reasonable terms may adversely affect business
  
• Lapses in quality control or disruptions at manufacturing facilities could adversely impact business, brand reputation, financial condition
  
• Disruption, slowdown, or shutdown in manufacturing operations could adversely affect business and results of operations
  

Anchor Investor Bidding Date

TBA

IPO Registrar and Book Running Lead Managers

• IPO Registrar: Bigshare Services
• Book Running Lead Managers: Holani Consultants

Business Model

The offerings of Advit Jewels include necklaces, earrings, rings, bangles and customised jewellery pieces. The company works primarily with gold, diamonds, and coloured stones and is known for its work in kundan and polki.

Company Growth Trajectory

The revenue from operations of Advit Jewels grew from ₹46.6041 crores in FY 23 to ₹124.9373 crores in FY 25. Its EBITDA margin increased from 27.41% in FY 23 to 29.73% in FY 25, while gross profit margin increased from 28.01% in FY 23 to 32.89% in FY 25. Organised manufacturing under one roof coupled with robust operational systems has helped the company grow over the years.

Market Position

The manufacturing unit of Advit Jewels is located at Jaipur having built up area of 6,450 sq. ft. and operated on leased premises fully maintained by the company. The company has been growing over the years to cater to increase in volumes and demand for its products and currently its flagship store in Jaipur, Rajasthan is under-construction. The company has a PAN India presence.

How to Check Allotment Status of Advit Jewels IPO?

1. Visit the Registrar’s Website

• Visit the official website of Bigshare Services
• Choose IPO Allotment Status from ‘Services’
• Click on any one of the servers
• Choose ‘Company Name’ from dropdown
• Enter either your application number, CAF number or beneficiary ID

2. Check on the National Stock Exchange Website

The National Stock Exchange (NSE) website has an IPO bid verification module. You can use it to check the allotment status of Advit Jewels IPO. Go to the NSE website and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.

On the NSE IPO bid verification page, enter:

• Company name from dropdown
• Application number
• PAN

Then click 'Submit' to know the allotment status.

3. Check on the BSE Website

The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to the BSE website and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:

• Select 'Equity' from the dropdown menu
  
• Choose 'Advit Jewels' in the next dropdown
  
• Enter your application number
  
• Enter your PAN
  
• Click 'Search’ to know allotment status
  

How to Apply for the Advit Jewels IPO?

To apply for this IPO:

• Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
  
• Specify IPO details: Enter the number of lots and the price you wish to apply for.
  
• Enter UPI ID: After entering your UPI ID, click submit. This will place your bid with the exchange.
  
• Mandate Notification: Your UPI app will receive a mandate notification to block funds.
  
• Approve Request: Your funds will be blocked once you approve the mandate request on your UPI.