Deepa Jewellers IPO

Deepa Jewellers Limited is a prominent organized B2B designer, processor, and supplier of hallmarked gold jewellery, with a formidable presence in South India. The company specializes in traditional and contemporary designs, with a core expertise in vaddanams (waist belts) and CNC machine-cut bangles, which are integral to South Indian bridal and festive wear. Operating primarily in Telangana, Andhra Pradesh, Tamil Nadu, Karnataka, and Kerala, it serves a vast network of 315 customers, including major jewellery retail chains and standalone stores. The company’s business is built on customer trust, a diverse product portfolio, and an established procurement and karigar network.

Deepa Jewellers Limited IPO Overview

Deepa Jewellers IPO is a book build issue of ₹459.72 crore, comprising a fresh issue of 1.41 crore shares aggregating to ₹250 crore and an offer for sale (OFS) of 1.18 crore shares aggregating to ₹209.72 crore. The IPO will open for subscription on September 1, 2026, and close on September 3, 2026, with the allotment expected to be finalised on September 4, 2026. The shares are proposed to be listed on the NSE and BSE, with a tentative listing date of September 8, 2026. The IPO has a price band of ₹168 to ₹177 per share, with a lot size of 84 shares. The minimum investment required by retail investors is ₹14,868 for one lot of 84 shares, based on the upper price band. Emkay Global Financial Services Ltd. is the book-running lead manager, while Bigshare Services Pvt. Ltd. is the registrar to the issue.

Deepa Jewellers Limited Upcoming IPO Details

Category	Details
Issue Type	Book Built Issue IPO
Total Issue Size	₹459.72 Crores
Fresh Issue	₹250.00 Crores
Offer for Sale (OFS)	Up to 1,18,48,340 Equity Shares aggregating to ₹209.72 Crores
IPO Dates	September 1, 2026 – September 3, 2026
Price Band	₹168 – ₹177 per share
Lot Size	84 Shares
Face Value	₹2 per share
Listing Exchange	BSE, NSE
Minimum Investment	₹14,868 for 1 lot (84 shares), based on upper price band
Shareholding Pre-Issue	8,20,00,000 shares
Shareholding Post-Issue	9,61,24,293 shares

IPO Lots

Application	Lots	Shares	Amount
Retail (Min)	1	84	₹14,868
Retail (Max)	13	1,092	₹1,93,284
S-HNI (Min)	14	1,176	₹2,08,152
S-HNI (Max)	67	5,628	₹9,96,156
B-HNI (Min)	68	5,712	₹10,11,024

Deepa Jewellers Limited IPO Reservation

Investor Category	Shares Offered
QIB Shares Offered	Not more than 50% of the Offer
Retail Shares Offered	Not less than 35% of the Offer
NII (HNI) Shares Offered	Not less than 15% of the Offer

Deepa Jewellers Limited IPO Valuation Overview

KPI	March 31, 2026
Earnings Per Share (EPS)	₹4.95
Price/Earnings (P/E) Ratio	35.76x
Return on Net Worth (RoNW)	56.45%
Net Asset Value (NAV)	₹29.03
Return on Equity (RoE)	56.45%
Return on Capital Employed (RoCE)	52.08%
EBITDA Margin	7.60%
PAT Margin	5.44%
Debt to Equity Ratio	0.47

Objectives of the IPO Proceeds

The Net Proceeds from the Fresh Issue are intended to be utilised as per the details provided in the table below:

Particulars	Amount (in ₹ million)
Funding long-term working capital requirements	2,150.00
General corporate purposes*	[●]

Note: *To be determined upon finalisation of the Offer Price and updated in the Prospectus prior to filing with the RoC. The amount utilised for general corporate purposes shall not exceed 25% of the Gross Proceeds.

Deepa Jewellers Limited Financials (in ₹ crore)

Particulars	March 31, 2026	March 31, 2025	March 31, 2024
Assets	357.18	217.67	174.64
Total Income	1,927.73	1,400.10	1,025.73
Profit After Tax (PAT)	104.79	40.58	24.35
Reserves and Surplus	221.67	129.11	88.45
Total Borrowing	111.11	80.79	77.93

Financial Status of Deepa Jewellers Limited

Deepa Jewellers Limited IPO Strengths

1. Strong Presence in the Southern Market

Deepa Jewellers Limited has built a formidable presence in the South Indian region, which accounts for the highest share (38-43%) of jewellery consumption in India. The company operates primarily in states like Telangana, Andhra Pradesh, Tamil Nadu, Karnataka, and Kerala, contributing to over 98% of its revenue. This strategic focus allows it to tap into a culturally rich and high-demand market valued at ₹3,295 billion in FY 2025, projected to grow significantly.

2. Well-Established Customer Base with Long-Standing Relationships

The company has cultivated a trusted and extensive customer network of 315 entities, comprising 43 jewellery retail chains and 272 standalone stores. Deepa Jewellers Limited enjoys long-standing relationships with many of these customers, with 18 clients associated since inception. This deep-rooted trust and reliability in the B2B ecosystem are critical strengths that ensure consistent order flow and business stability.

3. Diverse Product Portfolio with Specialization

Deepa Jewellers Limited offers a diverse range of 14 products across 76 SKUs, with specialized expertise in vaddanams (waist belts) and CNC machine-cut bangles, which are central to South Indian bridal and festive wear. This portfolio caters to varied weight ranges (2.5g to 300g) and customer budgets, allowing it to serve a wide spectrum of demand from traditional heavy ornaments to contemporary lightweight jewellery.

4. Established Procurement and Karigar Network

The company has built a reliable procurement network for sourcing high-quality gold, silver, and gemstones from banks, bullion dealers, and key markets. Complementing this is its long-standing relationship with a network of 40 skilled karigars (artisans), 24 of whom have been associated for over 5 years. This ensures timely production, consistent quality, and control over the supply chain, which is vital in a supply-driven B2B model.

5. Experienced Promoters and Professional Management

Deepa Jewellers Limited is led by promoters with over 24 years of experience in the gems and jewellery industry, providing deep sectoral knowledge and strong stakeholder relationships. The management team is further supported by professionals with expertise in marketing, finance, and operations. This blend of promoter-led vision and professional execution facilitates strategic decision-making and operational excellence.

6. Robust Financial Performance with Consistent Growth

The company has demonstrated a strong track record of consistent financial growth. Revenue grew from ₹9,212.55 million in FY 2023 to ₹13,970.10 million in FY 2025, while PAT increased from ₹220.23 million to ₹405.80 million in the same period. Key metrics like RoNW (35.95% in FY25) and a healthy EBITDA margin underscore operational efficiency and robust financial health.

More About Deepa Jewellers Limited

1. Business Overview

Deepa Jewellers Limited is an organized B2B designer, processor, and supplier of hallmarked gold jewellery. Incorporated in 2021, it has rapidly established itself as a key player in the South Indian jewellery market. The company’s business model revolves around designing, processing, and supplying a wide array of gold jewellery to a vast network of jewellery retail chains and standalone stores across India.

2. Product Portfolio and Design Capability

A. Core Products:
The company’s product portfolio is diverse, comprising 14 products and 76 SKUs. Its signature products are vaddanams (traditional waist belts) and CNC machine-cut bangles, which together contributed approximately 76.4% of its revenue in H1 FY 2026. These items are deeply embedded in South Indian cultural and bridal wear.

B. Other Offerings:
The portfolio also includes gents kada, necklaces, earrings, mangtika, rings, and other traditional ornaments like jada and champasaralu.

C. Design Philosophy:
With an in-house team of five designers, Deepa Jewellers focuses on creating designs that blend cultural traditions with contemporary trends. It undertakes customized design development based on specific customer requirements, regional tastes, and budget considerations.

3. Operational and Supply Chain Strengths

A. Manufacturing & Karigar Network:
While currently reliant on a network of trusted third-party karigars (40 as of Nov 30, 2025), the company is setting up an in-house manufacturing facility in Hyderabad. This 6,696 sq. ft. facility, expected to be operational by FY2026, will enhance quality control, reduce dependence on external labour, and improve cost efficiencies.

B. Procurement:
The company sources raw materials like gold and silver through multiple channels, including RBI-registered banks, bullion dealers, and the India International Bullion Exchange (IIBX). Gemstones are procured from centers like Jaipur, Surat, and Thailand.

4. Market Reach and Customer Profile

Deepa Jewellers serves 13 states and 1 union territory, with its primary market being South India. As of November 30, 2025, its customer base of 315 includes prominent names like Joyalukkas India Limited, Kalyan Jewellers India Limited, and Tribhovandas Bhimji Zaveri Limited. This mix of large retail chains and standalone stores provides business stability and wide market reach.

Industry Outlook

The Indian Gems and Jewellery industry is one of the largest in the world, contributing significantly to the country’s exports and employment. The industry is poised for robust growth, driven by strong cultural affinity, rising disposable incomes, and increasing urbanization.

1. Overall Industry Growth

The Indian gold jewellery retail industry was valued at approximately ₹6,875 billion in Fiscal 2025, with a demand of 782 tonnes of gold.

The sector is expected to grow at a CAGR of 12-14% from FY 2025 to FY 2030, reaching an estimated size of ₹12,000 – ₹12,400 billion by Fiscal 2030.

2. Growth Drivers include:

A. Cultural Significance:
Jewellery remains integral to Indian weddings, festivals, and investments.

B. Economic Factors:
Rising disposable incomes, growing middle class, and increasing penetration of organized retail.

C. Government Initiatives:
Implementation of mandatory hallmarking (HUID) has boosted consumer confidence in purity.

D. Product Innovation:
Growing demand for lightweight, daily-wear, and designer jewellery, especially among younger consumers.

3. South Indian Market and Product-Specific Outlook

The South Indian region is the largest consumer of jewellery in India, holding a 38-43% market share. The B2B gems and jewellery market in this region was valued at ₹1,897 billion in FY 2025.

This market is projected to grow at a CAGR of 11-12% to reach ₹3,150 – ₹3,450 billion by FY 2030.

A. Bridal Jewellery:
Forms the core demand, with heavy ornaments like vaddanams and bangles being indispensable. Vaddanams symbolize tradition and prosperity, ensuring consistent demand.

B. Machine-Cut Jewellery:
The demand for CNC machine-cut bangles is rising due to their precision, intricate designs, and appeal across both bridal and daily-wear segments. This trend is gaining traction in Tier-2 cities as well.

C. Shift in Preferences:
There is an emerging trend towards minimalist and contemporary designs alongside traditional heavy jewellery, expanding the market base.

How Will Deepa Jewellers Limited Benefit

A. Benefit from Core Market Expansion:
The company is strategically positioned to capitalize on the projected growth of the South Indian B2B jewellery market, expected to reach ₹3,150-3,450 billion by FY2030, by deepening its presence in existing and new states within the region.

B. Leverage Dominant Product Demand:
Deepa Jewellers’ specialization in vaddanams and CNC machine-cut bangles aligns perfectly with enduring and growing product categories in the bridal and festive markets, ensuring sustained core demand.

C. Capture Shift to Organized Retail:
As the organized jewellery retail sector expands, the company’s established B2B model and relationships with major retail chains position it to be a preferred supplier, gaining market share from the unorganized segment.

D. Capitalize on Branded & Designed Jewellery Trend:
The increasing consumer preference for branded, hallmarked, and design-centric jewellery benefits organized players like Deepa Jewellers, which has an in-house design team and focuses on quality.

E. Utilize Infrastructure for Scalability:
The upcoming in-house manufacturing facility will allow the company to better meet rising demand, improve margin control, and ensure quality, directly supporting scalability in a growing market.

F. Explore Adjacent High-Margin Segments:
The growing appetite for studded and diamond jewellery presents an opportunity for the company to expand its portfolio into higher-margin categories, enhancing overall profitability.

G. Strengthen with Economic Tailwinds:
Rising disposable incomes and urbanization in its key markets will drive higher jewellery consumption, from which Deepa Jewellers can benefit through its extensive distribution network.

Peer Group Comparison

Name of the company	Face Value (₹)	Revenue (₹ Mn)	P/E Ratio*	EPS (₹)	RoNW (%)	NAV (₹)
Deepa Jewellers Limited	2	13,970.10	[●]	4.95	35.95%	16.25
Peer Group
Sky Gold and Diamonds Limited	10	29,249.32	36.89	7.18	24.41%	42.76
Shanti Gold International Limited	10	11,064.07	27.62	7.75	44.85%	21.13
Shringar House of Mangalsutra Limited	10	14,298.15	28.28	6.34	36.20%	20.83
RBZ Jewellers Ltd	10	5,301.49	13.81	9.70	17.15%	61.26
Khazanchi Jewellers Limited	10	17,719.27	32.46	18.15	21.43%	93.53

Key Strategies for Deepa Jewellers Limited

1. Setting Up an In-House Manufacturing Facility

Deepa Jewellers Limited is establishing a 6,696 sq. ft. in-house manufacturing facility expected to be operational by FY2026. This strategy aims to reduce dependence on third-party karigars, improve control over production timelines and quality, lower making charges, and enhance cost efficiency. The facility, equipped with advanced machinery like 3D printers and casting machines, will also help mitigate risks of pilferage and protect proprietary designs.

2. Strengthening Presence in Southern India

The company plans to deepen its footprint in the high-growth South Indian market by opening new sales offices, including one in Bengaluru by FY2027. This geographical expansion is aimed at serving a broader customer base more effectively, enabling quicker response times, faster delivery, and tapping into underrepresented markets. It also helps mitigate regional economic risks and drives recurring sales from existing and new customers.

3. Expanding Product Portfolio

Deepa Jewellers intends to add 2 new product categories and 22 additional SKUs by FY2027, focusing on higher-margin segments like paper casting and nakshi kundan jewellery. By strengthening its design team from 5 to 20 employees and leveraging social media insights, the company aims to accelerate innovation, cater to evolving consumer preferences, and increase its addressable market and profitability margins.

4. Investing in Brand Building and Marketing

The company plans to enhance its market presence by expanding its marketing team from 10 to 25 members and increasing participation in regional and national trade exhibitions and shows. These initiatives are designed to boost brand visibility among B2B customers, showcase new collections, gain market insights, and build relationships, thereby supporting future revenue growth and market penetration.

5. Leveraging Technology for Operational Efficiency

Deepa Jewellers seeks to implement technology across its operations, including a digital app for B2B customer design discovery, advanced inventory management systems, and a technology-driven order management system. A key focus is on deploying machinery and processes to minimize gold wastage through improved recovery systems. These measures aim to optimize working capital, improve operational responsiveness, and enhance overall cost efficiency.