The Divine Hira Jewellers Limited IPO 2025 is making waves in the market, offering an exciting opportunity for investors interested in the gold jewelry sector. The company specializes in premium 22 Karat gold jewelry, combining traditional artistry with modern designs, catering to wholesalers, showrooms, and retailers, primarily based in the Zaveri Bazar, Mumbai.

The Divine Hira Jewellers IPO is a fixed price issue amounting to ₹31.84 crores, with a fresh issue of 35.37 lakh shares priced at ₹90 per share. This IPO is designed to raise funds for various corporate purposes, including prepayment of loans and funding working capital needs, ensuring the company's growth and expansion plans are well-supported. Retail investors can apply for a minimum of ₹1,44,000, while High-Net-Worth Individuals (HNIs) are required to invest ₹2,88,000.

The IPO subscription period began on March 17, 2025, and concluded on March 19, 2025. The allotment is set to be finalized on March 20, 2025, and shares will be listed on the NSE SME with a tentative listing date of March 24, 2025. As of 7:00 PM on March 19, 2025, the IPO was subscribed 3.76 times, showcasing strong investor demand.

One of the key indicators for potential listing gains is the Grey Market Premium (GMP), which is currently at ₹13, signaling a potential gain of 14.89%. However, it is important to note that the GMP is not an official price discovery mechanism, as it is based on unorganized market demand and supply.

For investors wondering about the allotment process, the Divine Hira Jewellers IPO allotment date is March 20, 2025. The allotment status can be checked by visiting the registrar's website and entering the necessary details, such as the application number, PAN, or DP Client ID. This process ensures that investors can track their allotment status easily.

The objectives of the Divine Hira Jewellers IPO include utilizing the net proceeds for repayment of loans, meeting working capital requirements, and fulfilling general corporate purposes, with ₹300 lakh allocated for loan repayment, ₹1,900 lakh for working capital, and ₹619.09 lakh for general corporate purposes.

Financially, Divine Hira Jewellers has shown consistent growth, with revenues from operations for the fiscal year 2024 at ₹13,602.63 lakh and profit after tax of ₹249.83 lakh for the period ending September 30, 2024. The company boasts a pre-issue P/E ratio of 57.69x and a post-issue P/E ratio of 79.25x, both of which are relatively attractive compared to the industry average P/E ratio of 99x.

Given the financial metrics, the IPO appears to be fairly priced, with an annualized EPS of ₹5.26 and a P/E ratio of 17.11x. Despite the positive financial outlook, the recommendation is to avoid the IPO if you are seeking listing gains, as the Grey Market Premium indicates only moderate gains.

Divine Hira Jewellers Limited is led by experienced promoters, including Hirachand Pukhraj Gulecha, who has over 30 years of experience in the gems and jewelry industry, and Khushbu Niraj Gulecha, a jewelry designer with over 5 years of experience. Their leadership, along with the company’s strong financials, positions it as a solid player in the jewelry market.

The company’s key performance indicators reveal that the post-issue EPS for FY24 stands at ₹1.14, and the return on equity (ROE) is 16.36%, reflecting efficient use of capital. The return on capital employed (ROCE) for FY24 is also healthy at 13.54%, indicating strong profitability relative to the capital invested.

Overall, while Divine Hira Jewellers IPO offers a promising opportunity for those interested in the gold jewelry sector, investors should carefully consider the Grey Market Premium, subscription status, and financial performance before making an investment decision.

The Upcoming IPOs in this week and coming weeks are Arisinfra Solutions Limited,Rapid Fleet Management Services, Active Infrastructures Limited, Desco Infratech Limited, ATC Energies System Limited, Shri Ahimsa Naturals Limited.

The Current active IPO are Grand Continental Hotels.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst