Pushpa Jewellers Limited, a premium wholesale B2B jewellery maker, has opened its IPO with a Book Built Issue of ₹98.65 crores. The company is engaged in the sale of a wide range of traditional and modern gold jewellery with intricate detailing, using world-class stones like Emerald, Jade, Pearl, and Meena. With its base in India and a strong presence in international markets such as Dubai, the United States, and Australia, Pushpa Jewellers is looking to expand its reach further through this public issue.

The Pushpa Jewellers IPO opened for subscription on June 30, 2025, and will close on July 2, 2025. It includes a fresh issue of 53.70 lakh equity shares worth ₹78.94 crores and an Offer for Sale (OFS) of 13.41 lakh equity shares amounting to ₹19.71 crores. The price band has been fixed between ₹143 to ₹147 per share. With this pricing, the company is aiming for a market capitalisation of ₹356.07 crores at the upper end of the price band.

Retail investors need to apply for a minimum of 1 lot (1,000 shares), which translates into an investment of ₹1,47,000, while HNIs need to apply for at least 2 lots (2,000 shares) amounting to ₹2,94,000. The shares are proposed to be listed on the NSE SME platform.

IPO Subscription and GMP

As of 11:00 AM on July 1, 2025, the IPO has been subscribed 0.50 times, indicating a gradual build-up in investor interest. It’s important to note that significant inflows typically happen on the last day of the IPO window.

The Grey Market Premium (GMP) for the IPO stands at ₹17, reflecting an 11.56% expected listing gain with an anticipated listing price of ₹164. However, GMP is informal, unregulated, and speculative, and should not be the sole basis for investment decisions.

Anchor Investors and Allocation

Pushpa Jewellers successfully raised ₹14.05 crores from Anchor Investors at ₹147 per share. A total of 9,56,000 equity shares were allotted to anchor investors in consultation with the book running lead manager, Affinity Global Capital Market Private Limited.

Allotment and Listing Details

The allotment of shares is likely to be finalized by July 3, 2025 (Thursday). Investors can check their allotment status on the registrar’s website, Cameo Corporate Services Limited, by using their application number, PAN, or DP Client ID. The listing of shares is expected on July 7, 2025, on the NSE SME platform.

IPO Utilization Plan

Pushpa Jewellers plans to deploy the net proceeds from the IPO towards the following:

1. ₹4,539.39 lakhs for working capital to support inventory, operations, and expansion.

2. ₹190.00 lakhs as capital expenditure for setting up a new flagship showroom.

3. ₹345.60 lakhs for inventory purchase related to the new showroom.

4. The remaining funds will go towards general corporate purposes and issue-related expenses.

This strategic allocation of funds highlights the company’s intent to expand its retail footprint and enhance operational efficiency.

Business Model and Promoter Background

The core business of Pushpa Jewellers is B2B sales of high-end jewellery known for its detailed craftsmanship. The company’s designs reflect a balance of cultural richness and modern appeal, catering to both Indian and global clientele. Their expertise in curating jewellery with fine gemstones like Meena, Pearl, Jade, and Emerald sets them apart.

The company is led by seasoned promoters:

• Mr. Anupam Tibrewal (MD)

• Mr. Madhur Tibrewal (CFO)

• Mr. Mridul Tibrewal (CEO)

All three have over two decades of experience in the jewellery domain and have contributed to the firm's scaling, brand identity, and export success.

Financial Performance

The company has shown impressive growth in revenue and profitability over the last three years:

• Revenue from operations:

  • FY25: ₹28,127.08 lakh

  • FY24: ₹25,548.93 lakh

  • FY23: ₹16,584.08 lakh

• EBITDA:

  • FY25: ₹3,204.82 lakh

  • FY24: ₹2,008.91 lakh

  • FY23: ₹1,290.23 lakh

• Profit After Tax (PAT):

  • FY25: ₹2,228.63 lakh

  • FY24: ₹1,357.71 lakh

  • FY23: ₹814.39 lakh

This consistent growth, especially the near-doubling of PAT in just two years, showcases the company's financial robustness.

Valuation and Ratios

From a valuation perspective, Pushpa Jewellers presents an appealing investment profile when compared with the broader jewellery sector:

• Pre-issue EPS: ₹11.82

• Post-issue EPS: ₹9.20

• Pre-issue P/E: 12.43x

• Post-issue P/E: 15.98x

• Industry P/E: 110x

• ROCE (FY24): 27.84%

• ROE (FY24): 47.31%

• RoNW: 38.34%

These numbers suggest that the IPO is moderately priced, especially considering the industry average P/E and the high return ratios, reflecting strong profitability and capital efficiency.

Expert View: Should You Apply?

Despite the moderate subscription on Day 2, the company's strong financials, reasonable valuations, and established export network make it a compelling IPO for high-risk investors. The GMP of ₹17 also suggests positive sentiment in the grey market.

However, potential investors should remain cautious of:

• The SME segment’s liquidity constraints

• Final subscription levels on July 2

• Broader market volatility around the listing date

For investors looking at short-term listing gains, this IPO presents an opportunity with a limited downside, backed by a solid growth history and a reputable brand in the jewellery sector.

Conclusion

The Pushpa Jewellers IPO offers a chance to invest in a growing, profitable, and export-oriented jewellery brand with a strong domestic B2B base and a unique product portfolio. The company’s attention to detail in jewellery design, strong revenue trajectory, and international exposure gives it an edge.

Backed by experienced leadership and moderate pricing compared to industry benchmarks, the IPO appears fairly priced. Given its GMP indicating 11.56% expected listing gains, it is recommended that risk-taking investors consider applying, especially for short-term listing gains.

Disclaimer:
The information provided is for educational and informational purposes only and should not be construed as financial advice or an offer to buy or sell securities. Investments in IPOs and securities markets are subject to market risks. Always consult a registered financial advisor before investing.

The Upcoming IPOs in this week and coming weeks are Anthem Biosciences, Chemkart India, Meta Infotech, Happy Square Outsourcing Services, Cryogenic OGS, Crizac, .

The Current active IPO are Silky Overseas, Vandan Foods, Pushpa Jewellers, Cedaar Textile, Marc Loire Fashions, Neetu Yoshi, Adcounty Media India.

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