Advit Jewels Limited, a Jaipur-based B2B handcrafted jewellery manufacturer, has filed its Red Herring Prospectus (RHP) dated June 9, 2026, for a 100% book-built fresh issue IPO on the BSE and NSE. The company is known for Kundan Polki and traditional fine jewellery sold under its heritage brand Rambhajo. Here is a detailed breakdown of the IPO for retail investors.
About the Company
Advit Jewels Limited was incorporated on October 29, 2019, in Jaipur, Rajasthan, and converted to a public limited company in April 2025. Its manufacturing facility and display centre are both located in Jaipur’s C-Scheme area. The company operates on a B2B model, supplying handcrafted Kundan, Polki, Antique, Bridal, and Contemporary jewellery to national retailers, regional jewellers, and family jewellery chains across approximately 20 Indian states. It also has nascent export revenues from the USA and Hong Kong. The promoter family claims a 100-year legacy in the jewellery trade through the Rambhajo brand.
IPO at a Glance
| Detail | Information |
|---|---|
| Issue Type | 100% Fresh Issue (No OFS) |
| Total Issue Size | Up to 1,19,68,000 equity shares |
| Face Value | ₹10 per share |
| Price Band | To be announced (TBA) |
| Lot Size | To be announced (TBA) |
| Issue Opens | Tuesday, June 23, 2026 |
| Issue Closes | Thursday, June 25, 2026 |
| Anchor Investor Date | Monday, June 22, 2026 |
| Listing Exchanges | BSE + NSE |
| Pre-IPO Placement | 18,32,000 shares at ₹125 each (₹22.90 Cr raised) |
| BRLM (Lead Manager) | Holani Consultants Private Limited |
| Registrar | Bigshare Services Private Limited |
| Promoters | Nitin Gilara, Prateek Gilara, Vipul Gilara, Krishna Vardhan Gilara |
| Company Website | www.rambhajo.com |
Objects of the Issue
The company intends to use the net proceeds from this IPO entirely for business needs. No money goes to promoters via an Offer for Sale (OFS).
| Object | Proposed Amount (₹ Lakhs) |
|---|---|
| Funding incremental working capital requirements | 6,500.00 |
| Repayment / pre-payment of bank borrowings | 6,500.00 |
| General corporate purposes | Balance (max 25% of gross proceeds) |
Of the ₹13,000 lakhs (₹130 Cr) in defined deployment, ₹5,500 lakhs for working capital will be deployed in FY2026–27 and ₹1,000 lakhs in FY2027–28. The full ₹6,500 lakhs for debt repayment is planned in FY2026–27. CRISIL Ratings Limited has been appointed as the Monitoring Agency to track fund utilization.
Financial Performance Summary
Advit Jewels has reported strong revenue growth and consistent profitability over the past three fiscal years. Revenue nearly tripled from FY2023 to FY2025, with margins remaining stable.
| Metric | 9M FY2026 (Dec 25) | FY2025 | FY2024 | FY2023 |
|---|---|---|---|---|
| Revenue (₹ Lakhs) | 12,379 | 12,494 | 6,944 | 4,660 |
| Revenue Growth (YoY) | – | 79.9% | 49.0% | – |
| Gross Profit Margin | 34.1% | 32.9% | 28.4% | 28.0% |
| EBITDA Margin | 29.6% | 29.7% | 27.3% | 27.4% |
| PAT (₹ Lakhs) | 2,544 | 2,537 | 1,471 | 1,039 |
| PAT Margin | 20.6% | 20.3% | 21.2% | 22.3% |
| Basic EPS (₹) (post-bonus) | 7.95 | 7.92 | 4.60 | 3.25 |
| RoE (%) | 35.9% | 55.8% | 57.8% | 80.5% |
| RoNW (%) | 30.4%* | 43.6% | 44.8% | 57.5% |
| NAV / Share (₹) | 26.13 | 18.16 | 10.25 | – |
| Net Worth (₹ Lakhs) | – | 5,813 | 3,280 | 1,808 |
| Current Ratio | 2.08x | 1.76x | 1.93x | 2.66x |
| Inventory Holding Days | 154 | 199 | 158 | 91 |
*9M FY2026 RoNW is not annualised.
Key Financial Ratios for IPO Valuation
| Metric | Value |
|---|---|
| EPS FY2025 (Basic / Diluted) | ₹7.92 |
| EPS 9M FY2026 | ₹7.95 |
| Weighted Average EPS | ₹6.04 |
| Weighted Average RoNW | 46.34% |
| Industry Peer P/E Range | 11.10x – 12.86x |
| Industry Composite P/E | 11.98x |
| Issue P/E (at price band) | To be determined |
Listed Peer Comparison
The company has identified RBZ Jewellers Limited and Radhika Jeweltech Limited as its closest listed peers. Bluestone Jewellery (loss-making) is included in the RHP but is not directly comparable.
| Company | Revenue FY25 (₹ Lakhs) | EPS FY25 (₹) | P/E | RoNW (%) | NAV/Share (₹) |
|---|---|---|---|---|---|
| Advit Jewels Ltd* | 12,494 | 7.92 | TBA | 43.64% | 18.16 |
| RBZ Jewellers Ltd | 53,075 | 9.70 | 12.86x | 15.83% | 61.26 |
| Radhika Jeweltech Ltd | 58,829 | 5.09 | 11.10x | 18.63% | 27.34 |
| Bluestone Jewellery Ltd | 1,82,992 | (78.86) — loss | N/A | (24.0%) | 363.96 |
*Advit Jewels P/E will be updated once the price band is declared. Peer P/E based on NSE closing price as of May 15, 2026.
Notably, Advit Jewels’ RoNW of 43.64% is significantly higher than both RBZ Jewellers (15.83%) and Radhika Jeweltech (18.63%), reflecting a more capital-efficient business. However, its absolute revenue base is much smaller than peers.
Business Strengths at a Glance
The company’s manufacturing operations are fully integrated under one roof in Jaipur. It specialises in Kundan Polki, a high-margin, handcrafted niche. Promoters have roughly 26 years of experience in the trade. The company sells across approximately 20 Indian states and has begun exports to the USA and Hong Kong. All four promoters are from the same family, providing continuity of vision though also raising concentration risk.
Key Risks to Watch
Investors should note the following material risks disclosed in the RHP before forming any view on this IPO.
Raw Material Dependence: Gold, diamond polki, and precious stones account for over 99% of total material costs. The company does not hold long-term supply contracts, leaving it fully exposed to commodity price swings.
High Inventory: Inventory holding days have risen sharply from 91 days in FY2023 to 199 days in FY2025. As of December 2025 (9M period), inventory stood at ₹9,902 lakhs, representing about 80% of revenue. This ties up significant working capital and creates valuation and write-down risks.
Single-Location Risk: All manufacturing is concentrated in a single facility in Jaipur. Any disruption — natural disaster, civil unrest, labour strike, or utility failure — could halt production with no backup facility available.
Brand Name Concern: The brand “Rambhajo” was acquired via trademark assignment from a promoter group entity. The formal registration approval (TM-P form) was pending as of the RHP date. Any complication in this process could impact brand continuity.
Working Capital Intensity: Operating cash flows have been negative in FY2023, FY2024, and FY2025 (–₹277, –₹1,049, –₹3,698 lakhs respectively), turning positive only in 9M FY2026 (₹1,783 lakhs). This suggests significant cash absorption in the business, which the IPO proceeds partly aim to address.
Debt Repayment as Use of Funds: Half the defined net proceeds (₹6,500 lakhs) are earmarked for loan repayment rather than capacity expansion. This does not grow the business directly but does improve the balance sheet.
Family-Controlled Promoter Group: All four promoters are from the Gilara family. While this brings operational cohesion, any family disagreement or succession issue could affect governance.
Small Company Scale: At ₹124–125 Cr in annual revenue, Advit Jewels is significantly smaller than listed peers RBZ Jewellers (₹530 Cr) and Radhika Jeweltech (₹588 Cr). Scalability beyond Jaipur has not yet been demonstrated.
Pros and Cons
✔ Pros
- Strong revenue growth — nearly 3x in 3 years (FY23 to FY25)
- Consistent PAT margins of 20–22% — above peer average
- High RoNW of 43–57% — significantly better than listed peers
- 100% Fresh Issue — all IPO money goes to the company, not promoters
- No Offer for Sale component — promoters are not exiting
- Niche B2B Kundan Polki segment with strong artisanal differentiation
- Growing pan-India customer base across ~20 states
- Pre-IPO at ₹125/share shows institutional conviction
- In-house manufacturing with full process control
- EPS has grown from ₹3.25 (FY23) to ₹7.92 (FY25) — 144% increase
✗ Cons
- Price band not disclosed yet — fair valuation assessment pending
- Negative operating cash flows in FY23, FY24, and FY25
- Inventory days ballooned from 91 to 199 — high working capital risk
- Over 99% of material cost is commodity-linked (gold, gemstones) — zero hedging
- Single manufacturing location in Jaipur — no backup facility
- Half of IPO proceeds go to debt repayment, not business expansion
- Revenue (~₹125 Cr) is much smaller than listed peers (~₹530–590 Cr)
- Promoter family controls all key management roles — governance risk
- Brand “Rambhajo” trademark registration was pending as of RHP filing
- Company incorporated only in 2019 — limited public operating history
