Deepa Jewellers stock lists at 25 per cent premium on market debut

Representational Image. File pic.

Shares of Deepa Jewellers Ltd on Tuesday listed with a premium of nearly 25 per cent against the issue price of Rs 177.

The stock started trading at Rs 221.05, up 24.88 per cent from the issue price on the BSE. On the NSE, it listed at Rs 221, up 24.85 per cent.

The company's market valuation was Rs 1,920.56 crore.

The initial public offer of Deepa Jewellers was subscribed nearly 43 times on the final day of bidding on Thursday, driven by strong demand across investor categories, particularly institutional buyers.

The Rs 460-crore IPO had a price band of Rs 168-177 per share and comprised a fresh issue of equity shares worth up to Rs 250 crore and an offer-for-sale of over 1.18 crore shares.

Proceeds from the fresh issue will be utilised by the company to fund long-term working capital requirements for procurement, maintenance and scaling up of inventory, besides general corporate purposes.

Incorporated in 2016, Deepa Jewellers is an organised B2B designer, processor and supplier of hallmarked gold jewellery, primarily operating across Telangana, Karnataka, Andhra Pradesh, Tamil Nadu and Kerala.

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

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