Advit Jewels IPO Surges on Day Two, Books Over 24X Subscription Amid Strong GMP Rally
Advit Jewels initial public offering (IPO) continued to witness immense investor enthusiasm on Wednesday, building upon a successful opening day. The Rs 165.16-crore issue saw substantial demand as the company's shares commanded a grey market premium (GMP) of around 40 percent. This sustained interest signals strong market confidence in the fine jewellery segment and Advit Jewels' brand equity.Investor Demand Skyrockets Across All Categories
As of 12:15 pm, NSE data revealed that the IPO received bids for 19.96 crore shares against an available offer of 83.79 lakh shares. This translates to a robust subscription rate of 23.82 times. The performance across various investor groups indicates broad market appetite for the company's offering.The non-institutional investors quota was subscribed at 58.29 times, highlighting significant interest from specialized participants. Retail investors responded particularly well, achieving a subscription rate of 21.99 times. Meanwhile, Qualified Institutional Buyers (QIBs) also drove strong demand, with their portion subscribing at 58.29 times.
Grey Market Premium Propels Listing Expectations
The market is currently pricing Advit Jewels shares at a premium exceeding 40 percent in the grey market. Tracking platforms provide specific estimates on this expected surge. Investorgain quoted a GMP of Rs 55 for the stock, which points towards a potential listing gain approaching 39.86 percent. IPO Watch provided a similar assessment, citing a GMP of 40.58 percent.These strong grey market indicators suggest that the proposed IPO price band of Rs 130-138 per share is likely to be significantly surpassed upon listing. The company has set a clear timeline for allotment on Monday, June 29, with the share listing tentatively scheduled for July 1.
Company Profile and Fund Utilization Plan
Advit Jewels specializes in the manufacture and sale of high-quality fine jewellery, both traditional and contemporary. The company markets its products globally under the 'Rambhajo' brand name. Its expertise lies particularly in customised Kundan, Polki, diamond, and studded jewellery pieces.The proceeds generated from this IPO will be strategically utilized by Advit Jewels management. A portion of the funds will be allocated toward the repayment of borrowings amounting to Rs 65 crore. Additionally, the company plans to dedicate Rs 65 crore towards funding working capital requirements and for general corporate purposes.
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