Divine Hira Jewellers Ltd made its debut on the NSE SME platform on March 24, opening at ₹90 per share, the same as the IPO price. However, the stock soon witnessed selling pressure, dropping 5% to hit the lower circuit limit at ₹85.5 per share. This muted listing comes despite the IPO being subscribed nearly four times, indicating a mixed response from investors.

Within the first 10 minutes of trade, approximately 1.78 crore shares exchanged hands on the NSE Emerge platform, recording a total trading value of ₹1.59 crore. At the listing price of ₹90 per share, the company’s market capitalization stood at ₹111.55 crore. However, after the stock hit the lower circuit, IPO investors saw a loss of ₹7,200 per lot, with the minimum investment value per lot dropping to ₹1,36,800 from ₹1,44,000.

Divine Hira Jewellers IPO Details and Subscription

The Divine Hira Jewellers IPO raised ₹31.84 crore through a fresh issue of 35.38 lakh shares. There was no offer-for-sale (OFS) component, ensuring all proceeds directly benefited the company. The IPO was open for subscription from March 17 to March 19, with a fixed issue price of ₹90 per share and a minimum lot size of 1,600 shares for retail investors.

Driven by strong retail demand, the IPO saw a subscription rate of nearly four times on the final day. The breakdown of the subscription was as follows:

• Retail Individual Investors (RIIs): Applied for 1.11 crore shares, resulting in a 6.62x subscription against the 16.8 lakh shares reserved.

• Non-Institutional Investors (NIIs): Applied for 21.34 lakh shares, achieving a 1.27x subscription of their 16.8 lakh quota.

• Qualified Institutional Buyers (QIBs): Subscribed for only 56,000 shares.

Company Overview and Business Model

Divine Hira Jewellers specializes in designing and marketing premium 22 Karat gold jewellery. The company supplies jewellery products to showrooms, wholesalers, and retailers across India. Their product range includes mangalsutras, chains, necklaces, rings, pendants, malas, bracelets, kadas, bangles, coins, and wedding jewellery. Apart from jewellery, they also deal in bullion, coins, and silver articles in Mumbai, making them a key wholesaler in the industry.

Utilization of IPO Proceeds

The company plans to use the IPO funds as follows:

• ₹3 crore for repaying loans (partially or in full)

• ₹19 crore for working capital requirements

• ₹6 crore for general corporate purposes

Divine Hira Jewellers Financial Performance

For the April-September period of FY 2024-25, Divine Hira Jewellers reported revenue from operations of ₹136.03 crore, with a Profit After Tax (PAT) of ₹2.5 crore.

For the full financial year 2023-24, the company posted ₹183.41 crore in revenue, compared to ₹246.45 crore in FY23. Despite the revenue decline, PAT increased to ₹1.48 crore in FY24 from ₹91 lakh in the previous year, reflecting profitability improvement.

Market Outlook and Investor Sentiment

While the IPO received strong retail demand, the stock's muted debut and subsequent lower circuit limit suggest cautious market sentiment. Given the volatility in SME IPOs, investors may watch for stability before making further commitments.

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