Deepa Jewellers IPO Fully Subscribed on Day 2 as Strong Grey-Market Premium Fuels Investor Interest
The ₹459.72 crore initial public offering of Deepa Jewellers gained momentum on its second day of bidding on September 2, 2026, crossing full subscription as retail and non-institutional investors increased their participation.
The Hyderabad-based B2B jewellery company's public issue had received bids for approximately 3.73 crore shares against 1.85 crore shares available for subscription by around 12:35 p.m., translating into an overall subscription of about 2.01 times.
Retail investors emerged as one of the strongest sources of demand, while participation from non-institutional investors also accelerated during the second session.
Investor sentiment has additionally been supported by activity in the unofficial grey market.
Grey-market estimates fluctuated during the day, with early reports indicating a premium of around ₹44 per share, or nearly 25% over the upper issue price of ₹177. As with all IPO grey-market indicators, the premium is unofficial and can change rapidly before listing.
Deepa Jewellers has fixed its IPO price band at ₹168 to ₹177 per share, with bidding scheduled to close on September 3.
Deepa Jewellers IPO Crosses Full Subscription on Day 2
Demand accelerated significantly after a relatively measured opening session.
The IPO ended Day 1 at approximately 0.87 times subscription, meaning investors had bid for about 87% of the shares available.
Retail participation was already stronger, with the retail category subscribed approximately 1.38 times by the end of the first day.
Momentum increased during Day 2.
By around 12:35 p.m. on September 2, investors had submitted bids for approximately:
3,72,52,068 shares
against:
1,85,20,085 shares on offer.
That pushed overall subscription to approximately:
2.01 times.
Demand continued to evolve through the session, making Day 2 considerably stronger than the opening day.
Retail Investors Lead Demand
Retail investors have played an important role in the response to the IPO.
The retail portion was already fully subscribed during the first day and demand increased further on September 2.
Retail enthusiasm can be particularly significant for mainboard IPOs because it provides an indication of broader market interest beyond institutional investors.
Non-institutional investors also increased their participation during the second session.
Qualified institutional buyer participation, however, remained comparatively subdued during the earlier part of Day 2.
Institutional investors frequently place substantial bids during the final stages of an IPO, making the final subscription day particularly important for assessing overall demand.
Grey-Market Premium Signals Positive Sentiment
The Deepa Jewellers IPO has attracted attention partly because of its grey-market premium.
Early on September 2, the IPO was reportedly commanding a GMP of approximately:
₹44 per share.
Against the upper IPO price of:
₹177 per share,
that implied an unofficial estimated price of around:
₹221 per share.
The difference represented a potential premium of approximately:
24.9%.
Later grey-market estimates varied, illustrating the volatility of the unofficial market.
GMP can move rapidly based on subscription levels, market conditions and changing investor sentiment.
GMP Is Not a Guaranteed Listing Price
Grey-market premiums receive significant attention during popular IPOs, but they should not be confused with an official stock-market price.
The grey market is an unofficial and unregulated market where participants express expectations regarding IPO shares before their formal listing.
A positive GMP can indicate optimistic sentiment.
However, it does not guarantee that shares will list at the implied price.
Actual listing performance can differ substantially depending on:
overall market conditions,
institutional demand,
final subscription levels,
investor sentiment,
and developments between the IPO closing date and listing.
The final market price will only be established once Deepa Jewellers shares begin trading on the stock exchanges.
Deepa Jewellers IPO Size Stands at ₹459.72 Crore
Deepa Jewellers is seeking to raise approximately:
₹459.72 crore
through the public offering.
The IPO combines a fresh issue of shares with an offer for sale by existing shareholders.
The fresh issue amounts to approximately:
₹250 crore.
The offer-for-sale component amounts to approximately:
₹209.72 crore.
The structure means part of the capital raised will go directly to the company, while proceeds from the OFS will go to selling shareholders.
Price Band Fixed at ₹168-₹177 Per Share
Deepa Jewellers has set the IPO price band at:
₹168 to ₹177 per equity share.
The face value is:
₹2 per share.
The issue opened for subscription on:
September 1, 2026
and is scheduled to close on:
September 3, 2026.
Investors therefore have a three-day bidding window.
The final offer price will be determined through the book-building process.
Retail Investors Need Minimum ₹14,868
The minimum lot size for the Deepa Jewellers IPO is:
84 shares.
At the upper price band of ₹177, a single retail lot requires an investment of:
₹14,868.
Investors can submit applications in multiples of 84 shares.
The lot structure determines how much capital retail and non-institutional investors need to commit when applying for the IPO.
Fresh Capital Primarily Targets Working Capital
Deepa Jewellers intends to use the majority of the fresh-issue proceeds to strengthen its working-capital position.
Approximately:
₹215 crore
has been earmarked for long-term working-capital requirements.
The funding will primarily support:
procurement,
maintenance,
and expansion of inventory.
The remaining proceeds can be deployed toward general corporate purposes, subject to the conditions outlined in the offer documents.
Working capital is particularly important in the jewellery business because companies must maintain substantial inventories of precious metals and finished products.
Why Jewellery Companies Require Significant Working Capital
Gold jewellery is an inventory-intensive business.
Unlike many consumer businesses where the cost of individual products is relatively low, jewellery companies hold substantial value in raw materials and finished inventory.
As a company expands, it may need additional capital to:
purchase gold,
maintain product variety,
serve larger customers,
support new geographic markets,
and increase inventory availability.
Higher gold prices can further increase working-capital requirements because maintaining the same physical quantity of inventory requires more capital.
The IPO therefore provides Deepa Jewellers with additional financial resources to support business expansion.
Deepa Jewellers Operates Primarily as a B2B Supplier
Deepa Jewellers operates primarily in the business-to-business jewellery market.
The company designs, processes and supplies hallmarked gold jewellery to:
retail jewellery chains,
regional retailers,
and standalone jewellery stores.
Its portfolio includes traditional and contemporary jewellery products.
The company has a significant presence across southern India, particularly in markets including:
Telangana,
Andhra Pradesh,
and Tamil Nadu.
Its B2B model distinguishes it from jewellery companies that rely primarily on company-owned retail stores.
Product Portfolio Includes Traditional Gold Jewellery
Deepa Jewellers supplies a range of gold and jewellery products.
Its portfolio includes categories such as:
vaddanam,
CNC machine-cut bangles,
neck pieces,
armlets,
earrings,
rings,
precious stones,
pearls,
and gold bullion.
Traditional jewellery categories form an important part of demand across southern India, where gold purchases are strongly connected with weddings, festivals and household wealth accumulation.
The company supplies products to retailers that subsequently sell them to end consumers.
Outsourced Manufacturing Supports Asset-Light Model
Deepa Jewellers has historically relied substantially on third-party artisans, commonly known as karigars, for jewellery manufacturing.
The model allows the company to operate without maintaining the same level of manufacturing infrastructure that a fully integrated jewellery producer might require.
An asset-light structure can reduce fixed capital requirements.
However, outsourcing also creates operational dependencies.
The company must maintain:
quality control,
reliable supplier relationships,
production consistency,
delivery schedules,
and adequate manufacturing capacity.
These factors remain important as sales volumes increase.
Company Moving Toward In-House Manufacturing Capacity
Deepa Jewellers is also progressing toward greater internal manufacturing capability through a new facility in Hyderabad.
Bringing part of production in-house could provide greater control over:
manufacturing processes,
quality,
production schedules,
capacity,
and operating efficiency.
The transition could also reduce some dependence on third-party artisans.
However, building and operating manufacturing capacity introduces additional execution requirements.
The effectiveness of this transition will therefore be an important factor in the company's post-IPO development.
FY26 Revenue Shows Strong Expansion
Deepa Jewellers reported substantial business growth during FY26.
Revenue increased to approximately:
₹1,927.73 crore
from around:
₹1,400.10 crore in FY25.
The increase reflects stronger business volumes and expansion across the company's jewellery operations.
Revenue growth is particularly relevant for investors evaluating whether the company can continue expanding after receiving additional working capital from the IPO.
Profit Rises Sharply in FY26
Profit growth was even stronger.
Deepa Jewellers reported profit of approximately:
₹104.79 crore in FY26
compared with:
₹40.58 crore in FY25.
That represents an increase of roughly:
158%.
The substantial improvement in profitability has become one of the key factors attracting attention to the IPO.
Investors will nevertheless need to determine whether this level of earnings growth can be sustained after listing.
Customer Concentration Remains an Important Risk
Despite strong financial growth, Deepa Jewellers faces several business risks.
One important consideration is customer concentration.
A significant portion of revenue comes from a relatively limited group of major customers.
High customer concentration can increase business risk because the loss or reduced purchasing activity of one large client can materially affect revenue.
For a B2B jewellery supplier, maintaining strong relationships with retail customers is therefore particularly important.
Supplier Concentration Also Requires Attention
Supplier concentration represents another factor for investors to consider.
Deepa Jewellers depends significantly on a relatively concentrated group of suppliers.
This can expose the company to potential risks involving:
raw-material availability,
commercial terms,
pricing,
delivery schedules,
and supply disruptions.
Because gold represents a high-value input, efficient procurement and inventory management are particularly important to profitability and cash flow.
Regional Concentration Creates Geographic Exposure
The company's strong presence in southern India is both a competitive strength and a concentration risk.
Deepa Jewellers has developed relationships and market knowledge across important southern jewellery markets.
However, substantial dependence on a limited number of states means regional economic or competitive developments could have a disproportionate effect on the business.
Geographic expansion could reduce this concentration over time, but expansion into new markets also requires investment and execution.
Cash Flow Is Another Factor for Investors
Investors evaluating the IPO may also examine the company's operating cash-flow history.
Rapidly growing inventory-intensive businesses can report strong accounting profits while simultaneously requiring significant cash to finance working capital.
Jewellery companies are particularly exposed to this dynamic because gold inventories carry high monetary value.
Deepa Jewellers has experienced negative operating cash flows in recent financial periods.
The planned allocation of IPO proceeds toward long-term working capital therefore has strategic significance.
IPO Could Value Deepa Jewellers at Around ₹1,700 Crore
At the upper end of the ₹177 price band, Deepa Jewellers is seeking a post-offer market valuation in the region of ₹1,700 crore.
Investors evaluating the IPO must therefore consider not simply the company's recent earnings growth but also the valuation being paid for those earnings.
A successful IPO depends on whether investors believe:
growth can continue,
profitability can be sustained,
working capital can be managed effectively,
and geographic expansion can create additional value.
Strong grey-market sentiment may support near-term enthusiasm, but long-term returns ultimately depend on business performance.
Final Day Could Bring Institutional Bidding
September 3 will be the third and final day of the IPO.
The final session is particularly important because qualified institutional buyers frequently submit a large proportion of their applications toward the end of the book-building period.
Investors will therefore watch:
overall subscription,
QIB participation,
NII demand,
retail subscription,
and changes in the grey-market premium.
A substantial increase in institutional demand could further strengthen the overall subscription numbers.
Allotment Expected on September 4
Following the closing of the issue on September 3, the company is expected to finalise the basis of allotment on:
September 4, 2026.
Refunds for unsuccessful applicants are tentatively expected to begin on:
September 7.
Shares are also expected to be credited to successful investors' demat accounts on September 7.
These dates remain subject to the normal IPO settlement process.
Deepa Jewellers Listing Scheduled for September 8
Deepa Jewellers shares are proposed to list on both:
BSE
and
NSE.
The tentative listing date is:
September 8, 2026.
Until then, grey-market activity is likely to remain closely watched.
However, the final listing price will depend on market conditions at the time of debut rather than today's unofficial GMP alone.
What Investors Will Watch Next
With the issue already fully subscribed on Day 2, attention now shifts toward the final bidding session.
Several indicators will determine the final demand profile:
QIB subscription,
NII participation,
retail demand,
overall oversubscription,
and grey-market sentiment.
Beyond listing day, investors will focus on the company's ability to translate IPO proceeds into sustainable growth.
Working-capital management will be especially important because a substantial portion of the fresh capital is being deployed toward inventory requirements.
Conclusion
The Deepa Jewellers IPO has gained significant momentum on its second day of bidding, moving from approximately 87% subscription at the end of Day 1 to more than two times subscription during September 2.
Retail investors have been among the strongest participants, while non-institutional demand has also strengthened.
The ₹459.72 crore IPO, priced at ₹168-₹177 per share, combines a ₹250 crore fresh issue with an offer for sale worth approximately ₹209.72 crore.
Grey-market sentiment has remained positive, with early September 2 indications pointing to a premium of nearly 25% over the upper issue price, although GMP remains unofficial and can change rapidly.
With bidding scheduled to close on September 3, attention now turns to final-day institutional participation and the ultimate subscription level.
Deepa Jewellers is tentatively scheduled to make its BSE and NSE debut on September 8, 2026, when investors will discover whether strong pre-listing sentiment translates into actual market demand.