Divine Hira Jewellers Limited has entered the market with an IPO that is now open for subscription. The IPO of Divine Hira Jewellers consists of a Fresh Issue of 35.37 lakh shares, with a total issue amount of ₹ 31.84 Crores. This marks a significant milestone for the company, which is based in Zaveri Bazar, Mumbai, and is known for its premium 22 Karat gold jewelry. The IPO subscription period began on March 17, 2025, and will close on March 19, 2025.

IPO Pricing and Market Capitalization

The share price for the IPO is set at ₹ 90 per equity share, with a market capitalization of ₹ 117.42 Crores at the offer price. The lot size is 1,600 shares, requiring a minimum investment of ₹ 1,44,000 for retail investors and ₹ 2,88,000 for High-Net-Worth Individuals (HNIs), who must invest in 2 lots.

Subscription Status and GMP

As of 10:50 AM on March 17, 2025, the IPO is subscribed 0.14 times on its first day of subscription. The Grey Market Premium (GMP) for the Divine Hira Jewellers IPO is ₹ 0, signaling that the company is not showing much investor excitement in the grey market. The GMP is usually indicative of investor interest before the official listing, but it should be noted that the grey market is unregulated and speculative.

IPO Objectives and Use of Funds

The proceeds from the IPO will be used for the following purposes:

1. ₹ 300 Lakhs for prepayment or repayment of certain loans.
2. ₹ 1,900 Lakhs for funding working capital requirements.
3. ₹ 619.09 Lakhs for general corporate purposes.

Company Overview

Divine Hira Jewellers designs and markets a wide range of 22 Karat gold jewelry to wholesalers, showrooms, and retailers. The company has a strong management team with HIRACHAND PUKHRAJ GULECHA having over 30 years of experience in the gems and jewelry industry.

In terms of financial performance, the company's revenues for the period ended September 30, 2024, stood at ₹ 13,602.63 Lakhs, with Profit After Tax (PAT) at ₹ 249.83 Lakhs. The company has shown consistent growth in profitability over the last few years, which is reflected in the increasing EBITDA and PAT figures.

Valuation and Financial Metrics

The company's pre-issue earnings per share (EPS) stands at ₹ 1.56, and the post-issue EPS is expected to be ₹ 1.14. The P/E ratio at the offer price is 57.69x, which is lower than the industry average of 99x, indicating that the IPO is priced fairly. The Return on Capital Employed (ROCE) for FY24 is 13.54%, and the Return on Net Worth (RoNW) is 16.36%, further indicating strong profitability and efficient utilization of capital.

IPO Review and Recommendation

Given the financial stability of the company and its steady growth trajectory, the Divine Hira Jewellers IPO appears to be a fairly priced offering. However, the Grey Market Premium (GMP) of ₹ 0 and the absence of notable market excitement suggest that there may be limited listing gains from this IPO. Based on the valuation and GMP trends, we recommend investors to avoid the Divine Hira Jewellers IPO if they are seeking short-term listing gains.

For those interested in long-term investments, this IPO may still offer potential due to the company's solid financial performance and established presence in the gold jewelry market. Retail investors and HNIs should assess their risk appetite before investing in this IPO.

The Current active IPO are Paradeep Parivahan, Divine Hira Jewellers.

The Closed IPOs are  Super Iron Foundry, PDP Shipping & Projects.

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