Deepa Jewellers Ltd IPO
Status: Closed
Overview
IPO date
01 Sept 2026 to 03 Sept 2026
Face value
₹ 2 per share
Price
₹ 168 to ₹177 per share
Issue Size
25,972,633 shares
(aggregating up to ₹ 459.72 Cr)
(aggregating up to ₹ 459.72 Cr)
Allotment Date
04 Sept 2026
Listing at
NSE
Issue type
Book Building
Sector
Diamond, Gems and Jewellery
Unlock Stock of the Month
T&C*
Strengths vs Risks of Deepa Jewellers Ltd
Know the pros & cons
Strengths
- Significant revenue contribution from Southern India.
- Well established customer base with long-standing relationship with jewellery retail chains and standalone stores.
- Diverse product portfolio with varied weight ranges, designs and specialisation in vaddanam and CNC machine cut bangles.
- Established procurement network and long -standing relationship with karigars.
- Well experienced Promoters and a professional management team with sectoral experience.
- Robust financial performance with consistent growth.
Risks
- The company's top 10 customers accounted for Rs. 12,460.30 million, Rs. 8,839.29 million and Rs. 6,901.89 million representing 64.67%, 63.27% and 67.36% of its revenue from operations based on the company's Restated Financial Information for the Fiscal 2026, Fiscal 2025 and Fiscal 2024 respectively. Its revenue from operations based on the company's Restated Financial Information is concentrated among a few key customers and any decision by these customers to reduce or terminate their business with it could significantly impact the company's business, financial condition and results of operations.
- The company derives a significant portion of its revenue from operations from the sale of the company vaddanam and CNC machine cut bangles. Its revenue from operations from the sale of vaddanam for the Fiscal 2026, Fiscal 2025 and Fiscal 2024 was Rs. 8,062.41 million, Rs. 4,830.59 million and Rs. 3,755.56 million representing 41.85 %, 34.58 % and 36.66 % of its revenue from operations for the indicated periods. The company's revenue from operations from the sale of CNC machine cut bangles for the Fiscal 2026, Fiscal 2025 and Fiscal 2024 was Rs. 5,948.53 million, Rs. 5,842.21 million and Rs. 4,075.94 million representing 30.87%, 41.82%, and 39.78% of its revenue from operations for the indicated periods. Any cancellation of the purchase orders of these products, could adversely affect its business, cash flows, financial condition, and overall results of operations.
- A significant portion of the company's business operations and revenue generation is concentrated in Southern India. For the Fiscal 2026, Fiscal 2025 and Fiscal 2024, its revenue from Southern India was Rs. 18,181.87 million, Rs. 13,738.07 million and Rs. 10,199.85 million respectively, representing 94.37%, 98.33% and 99.55% of total revenue for the indicated periods. This regional concentration could expose the Company to economic, cultural, geopolitical and local market risks.
- The company's inventories as of Fiscal 2026, Fiscal 2025 and Fiscal 2024 were Rs. 873.62 million, Rs.827.87 million and Rs.722.56 million representing 4.53%, 5.93%, and 7.05% as a percentage of its revenue from operations for the indicated periods respectively. The company results of operations are dependent on its ability to effectively manage the company's inventory. Its inability to accurately forecast demand or effectively manage the company's inventory may has an adverse effect on its business, financial condition, results of operations and cash flows.
- Timely procurement of gold bullion, the company's key raw material, as well as the quality and the price at which it is procured, play an important role in the successful operation of its business. The prices and availability of gold bullion depends on factors beyond the company's control, including general economic conditions, foreign exchange rates, competition, production levels and regulatory factors such as import duties. The non-availability or volatility in the cost of gold and absence of hedging facilities may has an adverse effect on its business, results of operations, financial condition and prospects.
- The company depends on certain key suppliers for gold bullion, the company's key raw material. Its top 10 suppliers accounted for Rs. 16,021.93 million, Rs. 10,845.93 million and Rs. 9,582.83 million representing 91.81%, 82.32% and 96.89% of the company's total purchase based on its Restated Financial Information for the Fiscal 2026, Fiscal 2025 and Fiscal 2024 respectively. The company procures gold bullions from RBI registered bullion bank, independent bullion dealers, exchanges from customers and import through India International Bullion Exchange (IIBX), with whom the company does not has any long-term contracts. In the event of any adverse regulatory development or failure by independent bullion dealers to perform their obligations in a timely manner, it may has an adverse effect on its business, financial condition, results of operations and cash flows.
- The company is subject to strict quality requirements, and sales of its products are dependent on the company's quality controls and standards. Any failures to comply with quality standards may adversely affect its business prospects, cash flows and financial performance, including cancellation of existing and future orders.
- The company is dependent on third party karigars for the production and manufacturing of all its products. The company has not entered into formal agreements with some of the karigars. Any discontinuation of services by these karigars, disruptions at their production or manufacturing facilities, or failures of such third parties to adhere to the relevant quality standards may has a negative effect on its reputation, business and financial condition.
- The company's business and the demand for its products are reliant on the success of its customers products with their respective retail customers, and any decline in the demand for the end products could has an adverse impact on its business, results of operations, cash flows and financial condition.
- The company has experienced negative cash flows from operating activities in previous periods and cannot assure you that its will not experience negative cash flows in future periods. Negative cash flows may adversely affect the company's financial condition, results of operations and prospects.
- The company's income and sales are subject to seasonal fluctuations and lower income in a peak season may has a disproportionate effect on its results of operations.
- Jewellery purchases are discretionary and are often perceived to be a luxury purchase. Any factor which may bring discretionary spending by retail customers under pressure may adversely affect its business, results of operations and financial condition.
- The company has incurred indebtedness, and an inability to comply with repayment and other covenants in its financing agreements could adversely affect its business, financial condition and results of operations.
- The company has availed unsecured loans from its Promoters that are repayable on demand, subject to requisite consent from Yes Bank Limited ("YBL").
- The company is exposed to counter party credit risk and any delay in, or non-receipt of payments may materially and adversely affect its cash flow.
- The strength of the brand is crucial to its success. Any reputational damage to the company's brand, name or logo could has an adverse effect on its financial condition, cash flows and results of operations.
- The Company's practice for accepting the return of unsold jewellery from customers, could result in inventory that cannot be resold, which could adversely impact its business, financial condition and results of operations.
- If the company is unable to continue to develop fashionable and popular designs, demand for the company jewellery may decrease, adversely affecting its result of operations and financial condition.
- The company is exposed to risks associated with its hedging activities, and any failures in the company's hedging strategy or execution may adversely affect its business, results of operations and financial condition.
- The company faces significant competition in the Indian jewellery market. Its market share may be adversely affected dues to changes in market trends, pricing and customer preferences, and its risk losing substantial portion of the company's customers which will adversely affect its business, financial condition, results of operations and prospects.
- The Company requires significant amounts of working capital for continued growth. Its inability to meet the company's working capital requirements, on commercially acceptable terms, may has an adverse impact on its business, financial condition and results of operations.
- The company incurs loss of gold during the jewellery manufacturing process, and any inability to effectively control or recover such loss could negatively impact its business and results of operations.
- The company's business is subject to the threats and challenges inherent in the gems and jewellery industry including the availability of raw materials, significant working capital and credit requirements, pricing volatility, intense competition and changes in the regulatory environment. Any inability to effectively manage these industry specific risks may adversely affect its business, financial condition, results of operations and cash flows.
- Any delay in payment of statutory dues by the Company in future, may result in the imposition of penalties and in turn may has an adverse effect on the Company's business, financial condition, results of operations and cash flows.
- There has been delays in filing certain statutory and regulatory forms with RoC by the Company in the past. Its cannot assure you that regulatory proceedings or actions will not be initiated against it in the future, and the company will not be subject to any penalty imposed by the competent regulatory authority in this regard.
- The company processes its jewellery through an outsourced manufacturing model with a pool of karigars. The company is exposed to the risk of its karigars leaking or misusing the company's designs, thereby impacting its business and financial performance.
- The success of the company's business operations is dependent on its Directors, Key Managerial Personnel and Senior Management. The company's inability to attract and retain key personnel or the loss of services of such personnel may has an adverse effect on its business prospects.
- The company does not register its jewellery designs under the Designs Act, 2000 and its may lose income if the company's designs are duplicated by the competitors. Its may fails to protect the company's jewellery designs and are susceptible to litigation for infringement of intellectual property rights in relation to such designs. This could materially and adversely affect its reputation, results of operations and financial condition.
- Its use company-owned vehicles as well as third party transportation and logistics service providers to procure raw materials and for the delivery of its products to the company's customers. The company's expenses towards freight and forwarding charges for Fiscal 2026, Fiscal 2025 and Fiscal 2024 were Rs. 4.02 million, Rs. 4.73 million and Rs. 3.78 million representing 0.02%, 0.04% and 0.04% of its total expenses. The company's delay in delivery of its products or raw materials or any increase in the charges of these entities could adversely affect its business, results of operations and financial condition.
- If the company fails to turn existing customers into repeat customers in a cost effective manner or to acquire new customers, its business, financial condition, and results of operations may be adversely affected.
- The company's Promoters has provided personal guarantees for loan facilities obtained by the Company. Further, its Promoter, Chairman and Managing Director Ashish Agarwal, in his capacity as a guarantor, has mortgaged his property, being the Registered Office of the Company, in favour of Yes Bank Limited. Any failures or default by the Company to repay such loan facilities in accordance with the terms and conditions of the financing documents could trigger repayment obligations on its Promoters, which may impact their ability to effectively service their obligations or if the personal guarantees are revoked by its Promoters may impact the company's business, operations, financial condition and cash flows.
- The company's Promoters will continue to retain majority shareholding in the Company subsequent to the Offer, which will allow them to exercise significant influence over the Company. Further, any substantial change in its Promoters shareholding may has an impact on the trading price of its Equity Shares which could has an adverse effect on its business, results of operations, financial condition and cash flows.
- An inability to maintain adequate insurance cover in connection with the company's business may adversely affect its operations and profitability.
- The company maintains large amounts of inventory at its Registered Office, sales offices and with the karigars at all times. Incidents such as fraud, theft, employee negligence or similar other incidents may adversely affect the company's results of operations and financial condition.
- The company operates in a high-value commodity sector, there are certain security risks associated with the transit and delivery of gold jewellery, including potential loss or theft.
- The company is in the process of setting up a Proposed Facility, and such expansion will be subject to the risks of unanticipated delays in implementation and cost overruns.
- The company has pending trademark applications including application for its corporate logos. If the company is unable to protect its intellectual property rights, the company's business, results of operations and financial condition may be adversely affected. Its may infringe upon the intellectual property rights of others and any misappropriation of the company's intellectual property could harm its competitive position.
- Any failures to obtain, renew and maintain requisite statutory and regulatory permits, licenses and approvals for the company's operations from time to time may adversely affect its business.
- The company has not been able to obtain records of the educational qualification for one of its Directors, Key Managerial Personnel and three of the company's Senior Management and have relied on provisional degrees or certificates for details of their profile included in this Red Herring Prospectus.
- The company has entered into transactions with related parties in the past. These transactions or any future transactions with its related parties could potentially involve conflicts of interest and there can be no assurances that such transactions, individually or in the aggregate, will not have an adverse effect on the company's business, prospects, results of operations and financial condition.
- The company's Promoters, some of its Directors, KMPs and members of Senior Management are interested in the Company, in addition to regular remuneration or benefits and reimbursement of expenses.
- The company has leased certain properties including its Registered Office, Proposed Facility and sales office. There can be no assurance that the lease agreements will be renewed upon termination or that the company will be able to obtain other premises on lease on same or similar commercial terms.
- The company's erstwhile Promoter Group entities, including Deepa Jewellers and Deepa Gold, have been dissolved prior to the filing of the DRHP; any residual tax liabilities, regulatory non-compliance, or penalties arising therefrom may adversely affect its Promoters and, indirectly, the Company.
- The company relies on its information technology systems for the company's business and operations and any failures, inadequacy or security breach in such systems could adversely affect its business, results of operation and reputation.
- The company's ability to pay dividends in the future will depends upon its future earnings, financial condition, cash flows, working capital requirements and capital expenditures and the terms of the company's financing arrangements.
- The company's past performance may not be indicative of its future growth. If the company is unable to sustain or manage its growth or implement the company's strategies, its business, results of operations, financial condition and cash flows may be adversely affected.
- The company's ability to raise capital at attractive costs depends on its credit ratings. Non-availability of credit ratings or a poor rating may restrict the company's access to capital and thereby adversely affect its business, financial conditions, cash flows and results of operations.
- Certain sections of this Red Herring Prospectus disclose information from the industry report which has been commissioned and paid for by it exclusively in connection with the Offer and any reliance on such information for making an investment decision in the Offer is subject to inherent risks.
- The objects of the Fresh Issue for which the funds are raised have not been appraised by any bank or financial institutions and are based on management estimates. Any revision in the estimates may requires it to reschedule the company's expenditure and may have a bearing on its expected revenues and earnings. Further, if there are any delays or cost overruns, the company's business, financial condition and results of operations may be adversely affected.
- Any variation in the utilisation of proceeds from the Fresh Issue shall be subject to applicable law.
- The company's inability to successfully implement some or all its business strategies in a timely manner or at all could have an adverse effect on the company's business.
- The Company will not receive any proceeds from the Offer for Sale and the proceeds from the Offer for Sale will be paid to the Promoter Selling Shareholder.
- Not all of the company's Directors have prior experience of holding a directorship in a company listed on the Stock Exchanges.
- Certain non-GAAP financial measures and certain other industry measures relating to the company's operations and financial performance have been included in this Red Herring Prospectus. These non-GAAP financial measures are not measures of operating performance or liquidity defined by Ind AS and may not be comparable with financial or industry related statistical information of similar nomenclature computed and presented by other companies.
Deepa Jewellers Ltd Peer Comparison
Understand the company’s industry standing
Deepa Jewellers Ltd
Sky Gold and Diamonds Limited
Shanti Gold International Limited
Face Value
2
10
10
Standalone / Consolidated
Standalone
Standalone
Standalone
Total Income Rs. Cr.
1926.676
4708.378
2018.709
EPS-Basis
12.78
13.97
21.22
EPS-Diluted
12.78
13.96
21.22
NAV Per Share
29.03
72.02
83
P/E-Basic EPS
13.85
53.87
11.48
P/E-Diluted EPS
---
---
---
RONW(%)
56.45
23.88
37.34
Latest NAV Period
---
---
---
Latest NAV
---
---
---
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The IPO opens on 01 Sept 2026 & closes on 03 Sept 2026.
Deepa Jewellers Limited was originally incorporated as a private limited company dated May 5, 2016, with the Registrar of Companies, Central Registration Centre and thereafter has converted into a public Company dated September 15, 2025 via fresh Certificate of Incorporation obtained from Central Processing Centre.
Company operates in 22 karat gold jewellery processing, job-work, and trading. It engages into design, process, and sell hallmarked plain gold and precious stone-studded jewellery. The products primarily include vaddanam (waist belt), CNC machine cut bangles, gents kada, vanky (armlet), dandpatti (bajuband), gundlamala haaram (traditional neck piece), gundlamala necklace, kangan, earring, mangtika (forehead pendant), maatil (ear chain), champasaralu (ear to hair chain), jada (braid ornament), and rings.
It provide job-work services by processing customer supplied materials into finished ornaments, and trade in silver ornaments, 18 and 20 karat gold jewellery, and gold bullion. The Company diversified the product by suppling CNC machine-cut bangles and kadas for men in 2020. It has expanded the geography market by establishing a branch in Vijayawada, South India in FY25.
Company is planning to raise funds of fresh issue aggregating to Rs 250 crore and by issuing 11,848,340 equity shares having face value Rs 2 per equity through offer for sale by way of IPO.
Deepa Jewellers Ltd IPO will close on 03 Sept 2026.
- Significant revenue contribution from Southern India.
- Well established customer base with long-standing relationship with jewellery retail chains and standalone stores.
- Diverse product portfolio with varied weight ranges, designs and specialisation in vaddanam and CNC machine cut bangles.
- Established procurement network and long -standing relationship with karigars.
- Well experienced Promoters and a professional management team with sectoral experience.
- Robust financial performance with consistent growth.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Ashish Agarwal | 40005000 | 48.79 | 34080830 | 35.45 |
| 2 | Seema Agarwal | 40000000 | 48.78 | 34075830 | 35.45 |
| 3 | Dev Agarwal | 1980000 | 2.41 | 1980000 | 2.06 |
| 4 | Chandrakala Agarwal | 4800 | 0.01 | 4800 | --- |
| 5 | Ashish Agarwal HUF | 10000 | 0.01 | 10000 | 0.01 |
- The company's top 10 customers accounted for Rs. 12,460.30 million, Rs. 8,839.29 million and Rs. 6,901.89 million representing 64.67%, 63.27% and 67.36% of its revenue from operations based on the company's Restated Financial Information for the Fiscal 2026, Fiscal 2025 and Fiscal 2024 respectively. Its revenue from operations based on the company's Restated Financial Information is concentrated among a few key customers and any decision by these customers to reduce or terminate their business with it could significantly impact the company's business, financial condition and results of operations.
- The company derives a significant portion of its revenue from operations from the sale of the company vaddanam and CNC machine cut bangles. Its revenue from operations from the sale of vaddanam for the Fiscal 2026, Fiscal 2025 and Fiscal 2024 was Rs. 8,062.41 million, Rs. 4,830.59 million and Rs. 3,755.56 million representing 41.85 %, 34.58 % and 36.66 % of its revenue from operations for the indicated periods. The company's revenue from operations from the sale of CNC machine cut bangles for the Fiscal 2026, Fiscal 2025 and Fiscal 2024 was Rs. 5,948.53 million, Rs. 5,842.21 million and Rs. 4,075.94 million representing 30.87%, 41.82%, and 39.78% of its revenue from operations for the indicated periods. Any cancellation of the purchase orders of these products, could adversely affect its business, cash flows, financial condition, and overall results of operations.
- A significant portion of the company's business operations and revenue generation is concentrated in Southern India. For the Fiscal 2026, Fiscal 2025 and Fiscal 2024, its revenue from Southern India was Rs. 18,181.87 million, Rs. 13,738.07 million and Rs. 10,199.85 million respectively, representing 94.37%, 98.33% and 99.55% of total revenue for the indicated periods. This regional concentration could expose the Company to economic, cultural, geopolitical and local market risks.
- The company's inventories as of Fiscal 2026, Fiscal 2025 and Fiscal 2024 were Rs. 873.62 million, Rs.827.87 million and Rs.722.56 million representing 4.53%, 5.93%, and 7.05% as a percentage of its revenue from operations for the indicated periods respectively. The company results of operations are dependent on its ability to effectively manage the company's inventory. Its inability to accurately forecast demand or effectively manage the company's inventory may has an adverse effect on its business, financial condition, results of operations and cash flows.
- Timely procurement of gold bullion, the company's key raw material, as well as the quality and the price at which it is procured, play an important role in the successful operation of its business. The prices and availability of gold bullion depends on factors beyond the company's control, including general economic conditions, foreign exchange rates, competition, production levels and regulatory factors such as import duties. The non-availability or volatility in the cost of gold and absence of hedging facilities may has an adverse effect on its business, results of operations, financial condition and prospects.
- The company depends on certain key suppliers for gold bullion, the company's key raw material. Its top 10 suppliers accounted for Rs. 16,021.93 million, Rs. 10,845.93 million and Rs. 9,582.83 million representing 91.81%, 82.32% and 96.89% of the company's total purchase based on its Restated Financial Information for the Fiscal 2026, Fiscal 2025 and Fiscal 2024 respectively. The company procures gold bullions from RBI registered bullion bank, independent bullion dealers, exchanges from customers and import through India International Bullion Exchange (IIBX), with whom the company does not has any long-term contracts. In the event of any adverse regulatory development or failure by independent bullion dealers to perform their obligations in a timely manner, it may has an adverse effect on its business, financial condition, results of operations and cash flows.
- The company is subject to strict quality requirements, and sales of its products are dependent on the company's quality controls and standards. Any failures to comply with quality standards may adversely affect its business prospects, cash flows and financial performance, including cancellation of existing and future orders.
- The company is dependent on third party karigars for the production and manufacturing of all its products. The company has not entered into formal agreements with some of the karigars. Any discontinuation of services by these karigars, disruptions at their production or manufacturing facilities, or failures of such third parties to adhere to the relevant quality standards may has a negative effect on its reputation, business and financial condition.
- The company's business and the demand for its products are reliant on the success of its customers products with their respective retail customers, and any decline in the demand for the end products could has an adverse impact on its business, results of operations, cash flows and financial condition.
- The company has experienced negative cash flows from operating activities in previous periods and cannot assure you that its will not experience negative cash flows in future periods. Negative cash flows may adversely affect the company's financial condition, results of operations and prospects.
- The company's income and sales are subject to seasonal fluctuations and lower income in a peak season may has a disproportionate effect on its results of operations.
- Jewellery purchases are discretionary and are often perceived to be a luxury purchase. Any factor which may bring discretionary spending by retail customers under pressure may adversely affect its business, results of operations and financial condition.
- The company has incurred indebtedness, and an inability to comply with repayment and other covenants in its financing agreements could adversely affect its business, financial condition and results of operations.
- The company has availed unsecured loans from its Promoters that are repayable on demand, subject to requisite consent from Yes Bank Limited ("YBL").
- The company is exposed to counter party credit risk and any delay in, or non-receipt of payments may materially and adversely affect its cash flow.
- The strength of the brand is crucial to its success. Any reputational damage to the company's brand, name or logo could has an adverse effect on its financial condition, cash flows and results of operations.
- The Company's practice for accepting the return of unsold jewellery from customers, could result in inventory that cannot be resold, which could adversely impact its business, financial condition and results of operations.
- If the company is unable to continue to develop fashionable and popular designs, demand for the company jewellery may decrease, adversely affecting its result of operations and financial condition.
- The company is exposed to risks associated with its hedging activities, and any failures in the company's hedging strategy or execution may adversely affect its business, results of operations and financial condition.
- The company faces significant competition in the Indian jewellery market. Its market share may be adversely affected dues to changes in market trends, pricing and customer preferences, and its risk losing substantial portion of the company's customers which will adversely affect its business, financial condition, results of operations and prospects.
- The Company requires significant amounts of working capital for continued growth. Its inability to meet the company's working capital requirements, on commercially acceptable terms, may has an adverse impact on its business, financial condition and results of operations.
- The company incurs loss of gold during the jewellery manufacturing process, and any inability to effectively control or recover such loss could negatively impact its business and results of operations.
- The company's business is subject to the threats and challenges inherent in the gems and jewellery industry including the availability of raw materials, significant working capital and credit requirements, pricing volatility, intense competition and changes in the regulatory environment. Any inability to effectively manage these industry specific risks may adversely affect its business, financial condition, results of operations and cash flows.
- Any delay in payment of statutory dues by the Company in future, may result in the imposition of penalties and in turn may has an adverse effect on the Company's business, financial condition, results of operations and cash flows.
- There has been delays in filing certain statutory and regulatory forms with RoC by the Company in the past. Its cannot assure you that regulatory proceedings or actions will not be initiated against it in the future, and the company will not be subject to any penalty imposed by the competent regulatory authority in this regard.
- The company processes its jewellery through an outsourced manufacturing model with a pool of karigars. The company is exposed to the risk of its karigars leaking or misusing the company's designs, thereby impacting its business and financial performance.
- The success of the company's business operations is dependent on its Directors, Key Managerial Personnel and Senior Management. The company's inability to attract and retain key personnel or the loss of services of such personnel may has an adverse effect on its business prospects.
- The company does not register its jewellery designs under the Designs Act, 2000 and its may lose income if the company's designs are duplicated by the competitors. Its may fails to protect the company's jewellery designs and are susceptible to litigation for infringement of intellectual property rights in relation to such designs. This could materially and adversely affect its reputation, results of operations and financial condition.
- Its use company-owned vehicles as well as third party transportation and logistics service providers to procure raw materials and for the delivery of its products to the company's customers. The company's expenses towards freight and forwarding charges for Fiscal 2026, Fiscal 2025 and Fiscal 2024 were Rs. 4.02 million, Rs. 4.73 million and Rs. 3.78 million representing 0.02%, 0.04% and 0.04% of its total expenses. The company's delay in delivery of its products or raw materials or any increase in the charges of these entities could adversely affect its business, results of operations and financial condition.
- If the company fails to turn existing customers into repeat customers in a cost effective manner or to acquire new customers, its business, financial condition, and results of operations may be adversely affected.
- The company's Promoters has provided personal guarantees for loan facilities obtained by the Company. Further, its Promoter, Chairman and Managing Director Ashish Agarwal, in his capacity as a guarantor, has mortgaged his property, being the Registered Office of the Company, in favour of Yes Bank Limited. Any failures or default by the Company to repay such loan facilities in accordance with the terms and conditions of the financing documents could trigger repayment obligations on its Promoters, which may impact their ability to effectively service their obligations or if the personal guarantees are revoked by its Promoters may impact the company's business, operations, financial condition and cash flows.
- The company's Promoters will continue to retain majority shareholding in the Company subsequent to the Offer, which will allow them to exercise significant influence over the Company. Further, any substantial change in its Promoters shareholding may has an impact on the trading price of its Equity Shares which could has an adverse effect on its business, results of operations, financial condition and cash flows.
- An inability to maintain adequate insurance cover in connection with the company's business may adversely affect its operations and profitability.
- The company maintains large amounts of inventory at its Registered Office, sales offices and with the karigars at all times. Incidents such as fraud, theft, employee negligence or similar other incidents may adversely affect the company's results of operations and financial condition.
- The company operates in a high-value commodity sector, there are certain security risks associated with the transit and delivery of gold jewellery, including potential loss or theft.
- The company is in the process of setting up a Proposed Facility, and such expansion will be subject to the risks of unanticipated delays in implementation and cost overruns.
- The company has pending trademark applications including application for its corporate logos. If the company is unable to protect its intellectual property rights, the company's business, results of operations and financial condition may be adversely affected. Its may infringe upon the intellectual property rights of others and any misappropriation of the company's intellectual property could harm its competitive position.
- Any failures to obtain, renew and maintain requisite statutory and regulatory permits, licenses and approvals for the company's operations from time to time may adversely affect its business.
- The company has not been able to obtain records of the educational qualification for one of its Directors, Key Managerial Personnel and three of the company's Senior Management and have relied on provisional degrees or certificates for details of their profile included in this Red Herring Prospectus.
- The company has entered into transactions with related parties in the past. These transactions or any future transactions with its related parties could potentially involve conflicts of interest and there can be no assurances that such transactions, individually or in the aggregate, will not have an adverse effect on the company's business, prospects, results of operations and financial condition.
- The company's Promoters, some of its Directors, KMPs and members of Senior Management are interested in the Company, in addition to regular remuneration or benefits and reimbursement of expenses.
- The company has leased certain properties including its Registered Office, Proposed Facility and sales office. There can be no assurance that the lease agreements will be renewed upon termination or that the company will be able to obtain other premises on lease on same or similar commercial terms.
- The company's erstwhile Promoter Group entities, including Deepa Jewellers and Deepa Gold, have been dissolved prior to the filing of the DRHP; any residual tax liabilities, regulatory non-compliance, or penalties arising therefrom may adversely affect its Promoters and, indirectly, the Company.
- The company relies on its information technology systems for the company's business and operations and any failures, inadequacy or security breach in such systems could adversely affect its business, results of operation and reputation.
- The company's ability to pay dividends in the future will depends upon its future earnings, financial condition, cash flows, working capital requirements and capital expenditures and the terms of the company's financing arrangements.
- The company's past performance may not be indicative of its future growth. If the company is unable to sustain or manage its growth or implement the company's strategies, its business, results of operations, financial condition and cash flows may be adversely affected.
- The company's ability to raise capital at attractive costs depends on its credit ratings. Non-availability of credit ratings or a poor rating may restrict the company's access to capital and thereby adversely affect its business, financial conditions, cash flows and results of operations.
- Certain sections of this Red Herring Prospectus disclose information from the industry report which has been commissioned and paid for by it exclusively in connection with the Offer and any reliance on such information for making an investment decision in the Offer is subject to inherent risks.
- The objects of the Fresh Issue for which the funds are raised have not been appraised by any bank or financial institutions and are based on management estimates. Any revision in the estimates may requires it to reschedule the company's expenditure and may have a bearing on its expected revenues and earnings. Further, if there are any delays or cost overruns, the company's business, financial condition and results of operations may be adversely affected.
- Any variation in the utilisation of proceeds from the Fresh Issue shall be subject to applicable law.
- The company's inability to successfully implement some or all its business strategies in a timely manner or at all could have an adverse effect on the company's business.
- The Company will not receive any proceeds from the Offer for Sale and the proceeds from the Offer for Sale will be paid to the Promoter Selling Shareholder.
- Not all of the company's Directors have prior experience of holding a directorship in a company listed on the Stock Exchanges.
- Certain non-GAAP financial measures and certain other industry measures relating to the company's operations and financial performance have been included in this Red Herring Prospectus. These non-GAAP financial measures are not measures of operating performance or liquidity defined by Ind AS and may not be comparable with financial or industry related statistical information of similar nomenclature computed and presented by other companies.
The Issue type of Deepa Jewellers Ltd is Book Building.
The minimum application for shares of Deepa Jewellers Ltd is 84.
The total shares issue of Deepa Jewellers Ltd is 25972633.
Initial public offering of 25,972,633 equity shares of face value of Rs. 2/- each ("Equity Shares") of Deepa Jewellers Limited ("the Company" or the "Issuer") for cash at a price of Rs. 177 per equity share (including a premium of Rs. 175 per equity share) ("Offer Price") aggregating to Rs. 459.72 Crores ("Offer"). The offer comprises of a fresh issue of 14,124,293 equity shares aggregating to Rs. 250.00 Crores (the "Fresh Issue") and an offer for sale of 11,848,340 equity shares aggregating to Rs. 209.72 Crores (the "Offer For Sale"), comprising of 5,924,170 equity shares aggregating to Rs. 104.86 Crores by Ashish Agarwal and 5,924,170 equity shares aggregating to Rs. 104.86 Crores by Seema Agarwal (collectively the "Promoter Selling Shareholders"). The offer will constitute 27.02% of the post-offer paid-up equity share capital.
Price Band: Rs. 177 per equity share of face value of Rs. 2 each.
The floor price is 88.50 times the face value of the equity shares.
Bids can be made for a minimum of 84 equity shares of face value of Rs. 2 each and in multiples of 84 equity shares of face value of Rs. 2 each thereafter.