Nifty50 PR 1x Inverse

Deepa Jewellers

• Deepa Jewellers is coming out with a 100% book building; initial public offering (IPO) of 2,67,29,292 shares of face value Rs 2 each in a price band Rs 168-177 per equity share. 
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on September 01, 2026 and will close on September 03, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 2 and is priced 84.00 times of its face value on the lower side and 88.50 times on the higher side.
• Book running lead managers to the issue are Emkay Global Financial Services and Valmiki Leela Capital.
• Compliance officer for the issue is Vandana Modani. 

Profile of the company

Deepa Jewellers is an organized business-to-business (B2B) company, engaged in designing, getting its jewellery manufactured, and supplying gold jewellery to other businesses such as retail chains and standalone stores, rather than selling directly to end customers. It designs its jewellery through a team of in-house designers who develop new products tailored to customer requirements, prevailing market trends and regional preferences enabling it to offer a diverse and customized product portfolio. It processes its gold jewellery through an outsourced manufacturing model, supported by a network of 41 karigars, who undertake its manufacturing activities. 

Under this model, it supplies raw materials including gold, alloys, and precious stones to the karigars, who manufacture jewellery in accordance with its designs and specifications and return the finished ornaments i.e ready to sell jewellery ornaments, to it in consideration for making charges. This approach provides operational flexibility and scalability to meet business demands without requiring significant capital investment. Further, the finished gold jewellery supplied by the company, is hallmarked, signifying that it has been certified for purity in accordance with applicable regulatory standards, thereby providing assurance as to the quality and authenticity of the gold used.

The company is engaged in the business of processing and supplying 22 karat gold jewellery, job-work services and trading of jewellery and related products. It designs, processes and supplies a wide range of hallmarked plain gold and precious stone studded jewellery. Its products primarily include vaddanam (waist belt), CNC machine cut bangles, gents kada, vanky (armlet), dandpatti (bajuband), gundlamala haaram (traditional neck piece), gundlamala necklace, kangan, earring, mangtika (forehead pendant), maatil (ear chain), champasaralu (ear to hair chain), jada (braid ornament), rings, bracelet and precious rings. In addition to its core jewellery processing operations, it also undertakes job work assignments, wherein it receives raw material from its customers, process them into finished ornaments. i.e ready to sell jewellery products and return the same for a fee, without taking ownership of such raw materials.

Proceed is being used for: 

• Funding long-term working capital requirements towards procurement, maintenance and scaling up of inventory by the company
• General corporate purposes

Industry overview

The gems and jewelry industry in India is a significant contributor to the country's economy, with a large domestic market and a substantial export-oriented sector. The industry is characterized by a mix of large manufacturers, exporters and innovative online wholesalers serving both domestic and international markets. Major players operate from hubs like Mumbai, Surat, Jaipur and Chennai, offering integrated supply chains, design customization and export scalability. Digital transformation, including adoption of e-commerce platforms, virtual try-ons and AI-powered personalization, is reshaping bulk ordering, catalog management and cross border trade in the B2B gems and jewellery space.

The B2B gems and jewellery industry in India, comprising manufacturers and wholesalers, has demonstrated strong growth in recent years, with market size increasing from Rs 3,030 billion in FY22 to Rs 7,301 billion in FY26. This expansion was primarily driven by rising demand from the retail segment up to FY25, while the sharp uptick in FY26 was largely attributable to higher gold prices. During FY22-FY26, the industry witnessed a compound annual growth rate (CAGR) of 24.6%. This growth was driven by factors such as the rise in gold prices, deferred purchases related to bridal jewellery, and an increase in disposable income of consumers. The industry saw a dip in demand during FY20 and FY21 due to high gold prices and the pandemic impact, but it quickly recovered in FY22. The market size continued to grow, reaching Rs 7,301 billion in FY26. From FY26 to FY30, the industry is expected to sustain moderated growth, with a projected CAGR of 2–3%. This trajectory is likely to be supported by multiple factors, including stabilisation of gold prices leading to release of deferred demand, increasing traction from organised retailers, growth in exports, and the gradual emergence of new markets.

B2B suppliers sit strategically between gold dealers/ traders and a variety of downstream buyers, including independent jobbers, exporters, and retail focused businesses. By sourcing raw materials from upstream dealers, B2B leverage advanced manufacturing expertise, design innovation, and quality assurance processes to add value before delivering products to their commercial partners. B2B suppliers with in-house manufacturing have following advantages, enhanced security and reduced pilferage, reduced wastage and improved gold recovery and labour cost savings. The critical position of these B2B suppliers lies in their ability to bridge the upstream commodity market with market facing retail businesses, facilitating efficient market access for manufacturers while ensuring retailers and exporters receive competitively designed and reliably produced jewellery aligned with current consumer trends.

Pros and strengths 

Robust financial performance with consistent growth: The growth in its revenues and profitability is attributable to its continued focus on productivity, cost realization and operational efficiencies. Its financial performance reflects the effectiveness of its management protocols and efficient working capital management across its business operations. Its total income for Fiscal 2026, Fiscal 2025 and Fiscal 2024 was Rs 19,277.25 million, Rs 14,001.00 million and Rs 10,257.29 million, respectively. Its EBITDA for Fiscal 2026, Fiscal 2025 and Fiscal 2024 was Rs 1,463.37 million, Rs 560.06 million and Rs 357.71 million. Its profit after tax for Fiscal 2026, Fiscal 2025 and Fiscal 2024 was Rs 1,047.88 million, Rs 405.80 million and Rs 243.47 million, respectively.

Well established customer base with long-standing relationship with jewellery retail chains and standalone stores: With this diverse product portfolio and team of creative designers, it has established a long-standing relationship with jewellery retail chains and standalone stores As of July 31, 2026, the company has a total customer base of 373 customers compromising 47 jewellery retail chains and 326 standalone stores. The gems and jewellery industry in India operates primarily on trust. It has been able to gain the trust of its customers through its customer-oriented approach and services. As of July 31, 2026, it has 373 customers, of which 18 customers are associated with it since the inception.

Diverse product portfolio: The company is one of the key processors and suppliers of vaddanam and CNC machine cut bangles, distributing to jewellery retail chains and jewellery standalone stores. It offers a diverse range of gold jewellery in different karat specifications to meet the requirements of its customers and its product portfolio includes a wide variety of designs, primarily comprising of vaddanam (waist belt), CNC machine cut bangles, gents kada, vanky (armlet), dandpatti (bajuband), gundlamala haaram (traditional neck piece), gundlamala necklace, kangan, earring, mangtika (forehead pendant), maatil (ear chain), champasaralu (ear to hair chain), jada (braid ornament), rings, bracelet and precious rings. As on July 31, 2026, it has a product portfolio of 16 products including 110 SKUs across its product categories. It designs and offers a broad portfolio of jewellery that caters to diverse customer preferences. Its product range spans multiple weight categories, from 2.50 grams to 300 grams, enabling it to serve a wide spectrum of customer budgets and design requirements. It also undertakes customised design development, enabling customers to tailor jewellery pieces based on their specific style preferences, budget considerations and regional tastes.

Established procurement network and long-standing relationship with karigars: The company has built a network of karigars with long standing relationships primarily in Telangana and Maharashtra. As of July 31, 2026, it was supported by 41 karigars, out of which, it has entered into formal agreements with 29 karigars. It has not entered into formal agreements with the remaining karigars, and its engagement with them is based on ongoing working relationships. Additionally, out of the 41 Karigars, 25 karigars are associated with it for more than 5 years, reflecting its long-standing relationships with the karigars. Its karigars are engaged in various stages of ornament production, including crafting, polishing, and finishing. Its network of karigars is integral to its ability to create new jewellery collections that cater to diverse customer tastes and regional preferences. These established relationships enable it to maintain timely production, ensure consistent product quality, and exercise control over its supply chain. Its network of karigars supports efficient operations within the supply-driven B2B jewellery ecosystem, where timely procurement and production are critical for meeting retailer schedules and requirements.

Risks and concerns

Business and revenue are highly dependent on key customers: The company is dependent on certain key customers for a significant portion of its revenue. Its top 10 customers accounted for more than 50% of its revenue in Fiscal 2026, Fiscal 2025 and Fiscal 2024. Its top 10 customers accounted for Rs 12,460.30 million, Rs 8,839.29 million and Rs 6,901.89 million representing 64.67%, 63.27% and 67.36% of its revenue from operations based on its Restated Financial Information for the Fiscal 2026, Fiscal 2025 and Fiscal 2024 respectively. Its revenue from operations based on its Restated Financial Information is concentrated among a few key customers and any decision by these customers to reduce or terminate their business with it could significantly impact its business, financial condition and results of operations.

Revenue is significantly dependent on sale of vaddanam and CNC machine cut bangles: The company derives a significant portion of its revenue from operations from the sale of its vaddanam and CNC machine cut bangles. Its revenue from operations from the sale of vaddanam for the Fiscal 2026, Fiscal 2025 and Fiscal 2024 was Rs 8,062.41 million, Rs 4,830.59 million and Rs 3,755.56 million representing 41.85 %, 34.58 % and 36.66 % of its revenue from operations for the indicated periods. Its revenue from operations from the sale of CNC machine cut bangles for the Fiscal 2026, Fiscal 2025 and Fiscal 2024 was Rs 5,948.53 million, Rs 5,842.21 million and Rs 4,075.94 million representing 30.87%, 41.82%, and 39.78% of its revenue from operations for the indicated periods. Any cancellation of the purchase orders of these products, could adversely affect its business, cash flows, financial condition, and overall results of operations.

Revenue concentration in Telangana exposes to regional market risks: A significant portion of its business operations and revenue generation is concentrated in Telangana. For the Fiscal 2026, Fiscal 2025 and Fiscal 2024, its revenue from Telangana India was Rs 8,010.62 million, Rs 6,779.81 million and Rs 4,507.44 million respectively, representing 41.58%, 48.53% and 43.99% of total revenue for the indicated periods. This regional concentration could expose the company to economic, cultural, geopolitical and local market risks. Any such unforeseen events or circumstances that negatively affect this region could have an adverse material effect on its sales and profitability.

Relies on third-party Karigars for all jewellery manufacturing activities: The company is dependent on third party karigars for the production and manufacturing of all its products. These karigars are external parties who manufacture jewellery for it on a non-exclusive basis. As on July 31, 2026, it has a pool of 41 karigars, out of which, it has entered into formal agreements with 29 karigars. It has not entered into formal agreements with the remaining karigars, and its engagement with them is based on ongoing working relationships. Given the non-exclusive nature of these agreements, its competitors may offer incentives to these karigars to prioritise their manufacturing and supply of jewellery which could adversely affect its operations adversely. Any discontinuation of services by these karigars, disruptions at their production or manufacturing facilities, or failure of such third parties to adhere to the relevant quality standards may have a negative effect on its reputation, business and financial condition.

Outlook

Deepa Jewellers is principally engaged in the organized business-to-business designing, processing of, and supplying hallmarked gold jewellery. The company is engaged in the business of processing 22 karat gold jewellery, job-work services and in the trading of jewellery and related products. The company is one of the key processors and suppliers of Vaddanam and CNC machine-cut bangles. The company's customers comprise organised jewellery retail chains and standalone jewellery retailers across India; the company does not operate consumer-facing retail showrooms and does not, in the ordinary course, transact directly with retail end-customers. On the concern side, the company depends on certain key suppliers for gold bullion, its key raw material. Its top 10 suppliers accounted for Rs 16,021.93 million, Rs 10,845.93 million and Rs 9,582.83 million representing 91.81%, 82.32% and 96.89% of its total purchase based on its Restated Financial Information for the Fiscal 2026, Fiscal 2025 and Fiscal 2024 respectively. It procures gold bullions from RBI registered bullion bank, independent bullion dealers, exchanges from customers and import through India International Bullion Exchange (IIBX), with whom it does not have any long-term contracts. In the event of any adverse regulatory development or failure by independent bullion dealers to perform their obligations in a timely manner, it may have an adverse effect on its business, financial condition, results of operations and cash flows.

The issue has been offering 2,67,29,292 shares in a price band of Rs 168-177 per equity share. The aggregate size of the offer is around Rs 449.05 crore to Rs 473.11 crore based on lower and upper price band respectively. Minimum application is to be made for 84 shares and in multiples thereon, thereafter. On performance front, its total income increased by 37.68% from Rs 14,001.00 million in Fiscal 2025 to Rs 19,277.25 million in Fiscal 2026. Profit for the year increased by 158.23% from Rs 405.80 million in Fiscal 2025 to Rs 1,047.88 million in Fiscal 2026.

Meanwhile, the company plans to expand its presence further in the gold and studded jewellery market by introducing new products categories with higher margins potential, including paper casting jewellery and nakshi kundan jewellery. Its strategy focuses on continuous innovation in design and product development to meet the evolving preferences and requirements of its B2B customers. It leverages social media insights to track emerging consumer trends and combine this with regular interactions between its senior management and retail clients, enabling it to continually refine its offerings and introduce innovative, affordable, and stylish daily-wear jewellery that aligns with the preferences of younger consumers.

Pursuant to Regulation 30(6) read with Part A of Schedule III and Regulation 47(1)(d) of the Securities and Exchange Board of India (Listing Obligations and Disclosures Requirements) Regulations, 2015, Jet Freight Logistics has informed that it enclosed a copy of the Newspaper Advertisement published in the newspapers, The Free Press Journal, English and Navshakti, Marathi, pertaining to the Notice of 20th Annual General Meeting of the Company. 

The above information is a part of company’s filings submitted to BSE.