Deepa Jewellers’ Rs 460-Cr IPO To Open on Sep 1; Sets Price Band at Rs 168–177

New Delhi: Deepa Jewellers Ltd on Thursday fixed a price band of Rs 168-177 per share for its upcoming Rs 460 crore Initial Public Offering (IPO).

The public issue will open for subscription on September 1 and close on September 3. Bidding by anchor investors will take place on August 31, according to a public announcement.

The IPO comprises a fresh issue of equity shares aggregating up to Rs 250 crore and an offer for sale of over 1.18 crore equity shares.

At the upper end of the price band, the issue size will be around Rs 460 crore. The post-issue implied market capitalisation is estimated at around Rs 1,700 crore at the higher end.

Proceeds from its fresh issuance will be utilised for funding long-term working capital requirements towards procurement, maintenance and scaling up of inventory by the company, and general corporate purposes.

Incorporated in 2016, the company is an organised B2B designer, processor and supplier of hallmarked gold jewellery, primarily having operations in Telangana, Karnataka, Andhra Pradesh, Tamil Nadu and Kerala.

The company designs, processes and sells a wide range of jewellery, operating through an outsourced manufacturing model, supported by a network of karigars.

Under the issue structure, 50 per cent of the offer has been reserved for Qualified Institutional Buyers (QIBs), 15 per cent for non-institutional investors and 35 per cent for retail investors.

The equity shares are proposed to be listed on both the BSE and NSE on September 8.

Emkay Global Financial Services and Valmiki Leela Capital are the book-running lead managers, while Bigshare Services is the registrar to the issue.

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