Divine Hira Jewellers Limited, based in Zaveri Bazar, Mumbai, is a renowned name in the design and marketing of premium 22 Karat gold jewelry. Specializing in traditional craftsmanship blended with modern design, Divine Hira Jewellers caters to wholesalers, showrooms, and retailers. The company is now going public with an IPO to raise ₹ 31.84 Crores, which is a Fixed Price Issue of 35.37 Lakh shares.

The subscription period for the IPO started on March 17, 2025, and ends on March 19, 2025. The shares are expected to be listed on the NSE SME with a tentative listing date of March 24, 2025. The IPO price has been set at ₹ 90 per share.

Key IPO Details

• IPO Price: ₹ 90 per share
• Market Capitalization: ₹ 117.42 Crores (at the upper price band)
• Lot Size: 1,600 shares
• Minimum Investment: ₹ 1,44,000 (1 lot for retail investors), ₹ 2,88,000 (2 lots for High-Net-Worth Individuals or HNIs)
• Subscription Status: As of 11:00 AM on March 19, 2025, the IPO has been subscribed 2.26 times on its final day of subscription.

Objectives of the IPO

Divine Hira Jewellers intends to utilize the net proceeds from the IPO for:

1. ₹ 3 Crores to prepay or repay certain loans.
2. ₹ 19 Crores for funding working capital requirements.
3. ₹ 6.19 Crores for general corporate purposes.

Financial Overview

Divine Hira Jewellers has consistently shown strong financial growth over the years. The company’s revenues from operations for FY 2024 stood at ₹ 18,341.05 Lakhs, reflecting a steady increase from previous years. The EBITDA for the same period was ₹ 347.06 Lakhs, and the Profit After Tax (PAT) was ₹ 148.17 Lakhs. These figures suggest a steady and robust financial performance.

For FY 2024, the pre-issue EPS is ₹ 1.56, and the post-issue EPS is ₹ 1.14, indicating positive growth. The P/E ratio at the upper price band of ₹ 90 is 57.69x, compared to the industry P/E ratio of 99x, suggesting that the stock is fairly priced relative to industry standards. The ROCE for FY 2024 stands at 13.54%, and the ROE is 16.36%, reflecting good return potential.

Grey Market Premium (GMP)

As of the latest data, the Grey Market Premium (GMP) for Divine Hira Jewellers IPO is ₹ 13, or a 14.89% premium, which indicates some positive momentum in the grey market. However, as with all GMP trends, it's important to note that these are speculative and do not reflect the actual price discovery process before the official listing.

IPO Allotment Process

The allotment date for Divine Hira Jewellers IPO is set for March 20, 2025, and the allotment status will be available on the Registrar’s website. To check the allotment status, follow these steps:

1. Visit the IPO allotment status page.
2. Select Divine Hira Jewellers IPO from the dropdown list.
3. Enter the application number, PAN, or DP Client ID.
4. Submit the details to check your allotment status.

Conclusion

Divine Hira Jewellers offers an attractive opportunity to invest in the gold jewelry sector, with strong financials and solid growth prospects. Despite the GMP reflecting a 14.89% premium, indicating some investor optimism, the P/E ratio suggests that the IPO is fairly priced. However, given the higher P/E and industry context, investors should carefully assess the long-term potential rather than focusing solely on listing gains. We recommend considering the investment based on long-term growth rather than short-term listing performance.

The Upcoming IPOs in this week and coming weeks are Arisinfra Solutions Limited, Grand Continental Hotels, Rapid Fleet Management Services, Active Infrastructures Limited, Desco Infratech Limited.

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

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