Anand Rathi Research assigned a “Subscribe for Long Term” rating while flagging customer concentration and gold price volatility among key risks.

Deepa Jewellers Limited’s initial public offering closed on Wednesday with total subscriptions of 42.61 times the shares on offer, as the three-day bidding window shut at 5 pm. The IPO, which opened on September 1, received bids for 78.91 crore shares against 1.85 crore shares offered at the upper price band of ₹177 per share.

NII category leads subscription demand

The non-institutional investor (NII) category emerged as the strongest segment, with an overall subscription of 105.96 times. Within this, high-net-worth individuals bidding over ₹10 lakh drove demand to 123.94 times their reserved quota. The qualified institutional buyer (QIB) category was subscribed 37.01 times, with foreign institutional investors, domestic financial institutions, and mutual funds all participating. Retail individual investors subscribed their portion 18.55 times.

IPO to raise ₹460 crore

The ₹460 crore IPO comprises a fresh issue of ₹250 crore and an offer for sale of ₹210 crore. Proceeds from the fresh issue are earmarked for long-term working capital requirements and general corporate purposes. Post-issue, promoter holding will reduce from 100 per cent to 73 per cent.

Deepa Jewellers reports strong FY26 growth

The Hyderabad-based company, incorporated in 2016, operates as a B2B designer and supplier of gold jewellery, primarily serving retail chains and standalone stores across South India. Its key products, vaddanam and CNC machine-cut bangles, contributed 72.8 per cent of FY26 revenue. The company reported revenue of ₹19,267 million in FY26, up 37.9 per cent year-on-year, with PAT rising to ₹1,048 million.

Anand Rathi flags key risks

Anand Rathi Research, the IPO’s note publisher, assigned a “Subscribe for Long Term” rating, citing the issue as fairly priced at 16.2x P/E based on FY26 earnings. The brokerage flagged key risks, including customer concentration, dependence on outsourced karigars, geographic reliance on South India, and gold price volatility as factors investors should monitor.

Published on September 3, 2026