Deepa Jewellers IPO fully subscribed, GMP points to 23% gain
What's the story
The initial public offering (IPO) of Deepa Jewellers has been fully subscribed on the second day of bidding. The issue, which opened for subscription on September 1, drew bids for over 2.4 crore equity shares against the 1.85 crore shares on offer. Retail investors drove demand, subscribing 2.01 times their allocated quota. The gray market premium (GMP) for the shares currently stands at ₹40 (23%), reflecting a positive sentiment among investors.
Growth strategy
Funds to support expansion plans
Telangana-based Deepa Jewllers is a supplier of hallmarked gold jewelry to retail chains and independent stores.
The company has set its IPO price band at ₹168-177 per share and the issue remains open for subscription until September 3.
The funds raised through this IPO will be used to support Deepa Jewellers' expansion plans and improve its operational capabilities.
Brand legacy
Deepa Jewellers raised ₹137.91cr in anchor round
Ahead of its public issue, Deepa Jewellers raised ₹137.91 crore by allotting 77.91 lakh shares to 14 anchor investors at the upper price band of ₹177 per share.
The anchor book featured prominent institutional participants, including Nomura Singapore, Ashoka India Equity Investment Trust Plc, and Citigroup, with Motilal Oswal Finvest emerging as the largest single participant.
In addition, domestic mutual funds, including Tata Asset Management Company and Unifi Mutual Fund, secured an allocation of 14.96 lakh shares.