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Deepa Jewellers has filed draft papers with SEBI to raise ₹250 crore through a fresh issue of shares. The IPO is aimed squarely at funding long-term working capital as the company scales its B2B jewellery operations.
Deepa Jewellers operates in the 22-carat gold jewellery space, offering designing, processing, job-work services and trading. It has a strong footprint across Telangana, Karnataka, Andhra Pradesh, Tamil Nadu and Kerala, supplying to large jewellery chains and standalone retailers.
The deets: the IPO includes fresh issue, while promoters Ashish Agarwal and his wife will offload up to 1.18 crore shares via an offer-for-sale. Of the fresh funds, ₹215 crore will go towards inventory procurement, maintenance and scaling up working capital, with the rest earmarked for general corporate purposes.
The company reported a profit of ₹40.6 crore in FY25, up 66.7% from the previous year. Revenue jumped 36.3% to ₹1,397 crore, reflecting strong volume growth in the southern jewellery market.
Why it matters: Gold prices have risen over 12–15% year-to-date, supported by central-bank buying, geopolitical uncertainty and expectations of global rate cuts.
In India, jewellery demand has remained resilient despite higher prices, with organised players gaining share as hallmarking and compliance tighten.
Against this backdrop of strong cash flows and favourable valuations, jewellery companies are choosing to tap equity markets to fund inventory-heavy growth. This comes at a time when investor appetite for the sector remains intact.
