Advit Jewels Lists at 37% Premium, Freezes After Falling in Early Trade

Mumbai, July 1: Advit Jewels share price made a strong debut on the stock exchanges on Wednesday, listing at a premium of nearly 37% over issue price. However, the initial rally proved short-lived, with the stock witnessing heavy profit booking and hitting its 5% lower circuit soon after listing. 

The stock opened at ₹188.90 on the NSE, a premium of 36.88% over its IPO price of ₹138 per share. On the BSE, it debuted at ₹187, reflecting a 35.51% listing gain. After the strong opening, selling pressure intensified, pushing the stock to its lower circuit limit despite the healthy listing premium. 

IPO Attracted Robust Investor Interest 

The strong debut followed overwhelming demand for the company’s ₹165.16-crore initial public offering, which was open for subscription from June 23 to June 25. 

Stock froze soon after a blockbuster listing, hitting the 5% lower circuit in early trade. Source: NSE 

The IPO was subscribed 212.63 times overall, making it one of the most heavily subscribed issues in recent months. The non-institutional investor (NII) category led the demand with a subscription of 536.38 times, while the qualified institutional buyers (QIBs) portion was subscribed 174.98 times. The retail investor segment also saw robust participation, with bids exceeding the reserved quota by 95.30 times. 

Ahead of the issue opening, the company had raised ₹49.52 crore from anchor investors, reflecting strong institutional confidence. 

The stock’s debut was broadly in line with expectations. The stock’s opening price closely tracked market expectations. The subsequent decline, however, suggested that many investors chose to book profits immediately after listing. 

Utilisation of IPO Proceeds 

The IPO consisted entirely of a fresh issue of equity shares, with no offer-for-sale component. Consequently, the entire proceeds from the public issue will accrue to the company. 

Advit Jewels plans to use the funds to repay or prepay borrowings, meet its working capital requirements, and support general corporate purposes. The capital infusion is expected to strengthen the company’s balance sheet while supporting its future expansion plans. 

About the Company 

Jaipur-based Advit Jewels operates under the heritage brand “Rambhajo Since 1921” and is engaged in the design, manufacture and wholesale of handcrafted jewellery, including Kundan, Polki, diamond and studded jewellery.

The company primarily caters to business customers across India while gradually expanding its presence in the organised jewellery market. While its strong IPO subscription and healthy listing underscore investor confidence in its long-term prospects, Wednesday’s lower-circuit hit highlighted the volatility often seen in newly listed stocks as early investors lock in listing gains. 

Source

• https://www.nseindia.com/get-quote/equity/RAMBHAJO/Advit-Jewels-Limited