Nityas Gems IPO: What makes it a good long-term bet? Analysts weigh in

Nityas Gems and Jewellery IPO preview: The ₹108.35-crore initial public offer (IPO) of Nityas Gems and Jewellery has opened for bidding for investors on Wednesday, September 30, garnering positive views from analysts. The offer will close for bidding on October 5. 

 

The company designs, manufactures, and sells lab-grown diamond-studded gold jewellery in India.

 

Nityas Gems and Jewellery IPO price band is set at ₹70 to ₹75 per share. The lot size for the offer is 200 shares, with the minimum payout by a retail investor of ₹15,000 at the upper end of the offer price. The issue is entirely a fresh issue of shares. The funds raised will be used for funding working capital requirements of the company.

 

 

The grey market premium (GMP) for Nityas Gems and Jewellery IPO has declined sharply over the last few sessions. Currently, its shares are trading at ₹78 in the unofficial market, up just ₹3 or 4 per cent from the IPO price.

 

The company follows an integrated business model comprising B2B manufacturing and distribution to organised retailers, standalone retailers and wholesalers, complemented by D2C omnichannel retail operations through its subsidiary, Ayaani Diamonds and Jewellery. Its operations span the entire value chain, including raw material procurement, product designing, manufacturing, quality control, distribution and branded retail.

 

Some of its key customers include  GIVA, Palmonas, ONYA and Ladia Diamonds, among others. 

 

Nityas Gems and Jewellery IPO review

Analysts at Anand Rathi said that Nityas Gems is positioned to participate in the growth of the lab-grown diamond (LGD) jewellery market, supported by increasing affordability, evolving consumer preferences, technological advancements and expanding demand across Tier-2 and Tier-3 cities. 

 

The brokerage finds valuation "fully priced" at 19.4x FY26 P/E and 14.8x FY26 EV/EBITDA. However, given its exposure to the growing lab-grown diamond jewellery segment, integrated B2B–D2C model and in-house manufacturing capabilities, it assigned a 'Subscribe for Long Term' rating for the issue. However, investors should monitor execution and the scalability of its D2C expansion. 

 

Echoing similar views, Master Capital said that Nityas Gems and Jewellery's presence across organised retail, standalone retailers, wholesalers and its own D2C platform provides exposure to the growing demand for affordable, lightweight and lab-grown diamond jewellery in India. "Investors may consider the IPO as a potential long-term investment."

 

Nityas Gems and Jewellery IPO subscription

As of 12.05 PM, Nityas Gems and Jewellery IPO was booked just 11 per cent, receiving bids for 1.61 million shares as against 14.45 million shares, according to NSE data.

 

The retail portion was booked 0.30 times, the non-institutional investor (NII) quota was subscribed 0.05 per cent, while the qualified institutional buyer (QIB) did not see any proceeds yet.

 

Disclaimer: Views and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.