Advit Jewels IPO: Jewellery Company Announces Files RHP For Public Issue; Should You Apply?

Jaipur-based jewellery maker, Advit Jewels, filed its Red-Herring Prospectus (RHP) on June 11. The bidding window for the company’s public issue is set to open later this month. The jewellery manufacturer plans to issue up to 12 million equity shares through the 100 per cent book-built public issue. Here is a look at some of the key details related to the company’s public issue.

Advit Jewels IPO: Offer Size and Structure

Advit Jewels’ public fundraise consists entirely of a fresh issue of up to 12 million equity shares with a face value of Rs 10 each. Notably, the company successfully undertook a pre-IPO placement of 1.83 million equity shares at a price of Rs 125 per share, aggregating to Rs 22.90 crore.

Advit Jewels IPO: Subscription Window and Timeline

The subscription window for Advit Jewels IPO opens on June 23 and closes on June 25. The share allotment status of the public issue will be finalised on June 29. The equity shares are proposed to be listed on both the BSE and NSE on July 1. The price band and minimum bid lot size will be decided by the company in consultation with the book running lead manager and announced two working days prior to the opening date.

Advit Jewels: Key Financials

According to the company's restated financial information, the company reported a total income of Rs 123.79 crore and profit-after-tax of Rs 25.44 crore for the period ended December 31, 2025. In the full fiscal year 2024-25, the company’s profit-after-tax increased by over 72 per cent to Rs 25.37 crore compared to Rs 14.71 crore in the preceding fiscal.

Advit Jewels: Business Model

Advit Jewels specialises in manufacturing high-end jewellery, such as Kundan Polki jewellery, along with diamonds, gold, and precious gemstone pieces. The company operates primarily through a business-to-business (B2B) model. The company caters to national retail chains, regional large-scale retailers, and established family jewellers across India. The company’s business is vertically integrated, overseeing conceptualisation, design, and manufacturing at its facilities.

Advit Jewels: Competitors

Advit Jewels operates in the unorganised gems and jewellery sector in India. The company competes with local unorganised boutique manufacturers along with large-scale corporate and listed jewellery brands that command significant market presence across major metropolitan and tier-1 regions. Some of the company’s listed peers include RBZ Jewellers, Radhika Jeweltech, Bluestone Jewellery and Lifestyle.

Advit Jewels IPO: Should You Apply?

Here is a look at the key strengths and risks outlined in the company’s RHP that investors should consider before bidding.

Advit Jewels IPO: Key Risks

• The company’s business is dependent on the market prices of gold, diamonds and other precious stones. The costs of these materials comprised 99.66 per cent of the total cost of materials consumed in FY 2025. Thus, the non-availability of these products or a significant increase  in prices is expected to impact the business negatively.

• The company maintains massive inventory levels to support its diverse B2B design catalogue. Inventory accounted for 85.07 per cent of current assets in FY 2025; this, in turn, exposes the company to risks related to inventory management, demand forecasting, valuation, carrying costs and supply chain disruptions, which can adversely affect working capital requirements, liquidity and profitability.

• The manufacturing ecosystem of the company and a massive chunk of its material sourcing (up to 77.32 per cent in FY 2024) are concentrated within Jaipur, Rajasthan, making operations vulnerable to regional disruptions or local supply chain bottlenecks.

Advit Jewels: Key Strengths

• The company claimed in its RHP that its manufacturing facility combines traditional craftsmanship with new-age technology and utilises equipment such as laser cutting and engraving systems.

• The company claims to have a diverse product collection, including antique, bridal, traditional, contemporary, and fusion styles, across various price ranges, occasions, and age groups.

• The jewellery maker said in its draft papers that its business is led by promoters with over 20 years of experience in the gold and jewellery industry.

Advit Jewels IPO: Objective

Advit Jewels plans to use the net proceeds from the fresh issue for fulfilling its incremental working capital requirements, repayment of its outstanding borrowings and other general corporate purposes.