Pushpa Jewellers IPO Opens: Key Details Inside

Pushpa Jewellers Limited, a well-established player in the Indian jewellery manufacturing industry, has launched its initial public offering (IPO) on June 30, 2025. The IPO is structured as a book-building issue and is scheduled to close on July 2, 2025. The offer comprises both a fresh issue and an offer for sale (OFS), with a combined aim to raise ₹98.65 crore.

In this detailed article, we will cover every critical aspect of the Pushpa Jewellers IPO, including its structure, pricing, company financials, growth outlook, risks, and whether investors should consider subscribing.

Overview of the IPO Structure

The Pushpa Jewellers IPO consists of a total of 67.11 lakh equity shares, distributed as follows:

• Fresh Issue: 50.34 lakh shares (worth ₹74.00 crore)

• Offer For Sale: 13.41 lakh shares (worth ₹19.71 crore)

The IPO is priced within a band of ₹143 to ₹147 per share, and the face value of each share is ₹10. This results in a market capitalization of approximately ₹356 crore at the upper price band.

The lot size for retail investors is 1,000 shares, which means a single lot will cost around ₹1.47 lakh. High net-worth individuals (HNIs) need to bid for a minimum of 2 lots, which amounts to 2,000 shares or ₹2.94 lakh.

The equity shares will be listed on the NSE SME platform, with the tentative listing date set for July 7, 2025.

Key IPO Timelines

Share Reservation Breakdown

As a book-building IPO, Pushpa Jewellers has allocated shares among various investor categories as per SEBI guidelines:

Anchor investors have already been allocated a portion of the QIB quota prior to the IPO opening.

About the Company: Pushpa Jewellers Limited

Pushpa Jewellers was incorporated in 2009 and operates in the manufacturing, designing, and retailing of 22-carat lightweight gold jewellery. The company is known for blending traditional Indian craftsmanship with modern aesthetics and techniques.

Product Portfolio

Their product range includes:

• Necklaces

• Earrings

• Rings

• Bangles

• Mangalsutras

• Pendants

• Kadas and more

Pushpa Jewellers serves both domestic and international markets, with showrooms located in Bengaluru, Hyderabad, and Chennai. The company also exports to countries such as the UAE, United States, and Australia.

Financial Performance Overview

Pushpa Jewellers has posted consistent growth in revenue and profitability over the past three financial years. Here’s a summary of the key financial indicators:

Yearly Financial Summary

Analysis

• Revenue grew at a CAGR of nearly 30% over three years.

• Profit After Tax grew over 64% YoY between FY2024 and FY2025.

• High Return on Equity (47.31%) and EBITDA margin (11.3%) signal strong profitability and operational efficiency.

• Increase in assets and net worth indicates expansion and better capital management.

Valuation Metrics

Here’s a breakdown of Pushpa Jewellers’ valuation at the upper price band of ₹147:

• PE Ratio (Pre-IPO): 12.10

• EPS (Pre-IPO): ₹11.82

• EPS (Post-IPO): ₹9.20 (due to dilution)

• PE Ratio (Post-IPO): 15.98

• Price to Book Value: 7.68

These metrics suggest that while the IPO is modestly priced compared to listed peers, post-IPO valuation could appear slightly expensive unless growth continues at a strong pace.

Grey Market Premium (GMP) Update

As of June 30, 2025, the Grey Market Premium (GMP) for Pushpa Jewellers IPO stands at ₹0, indicating that the stock may list at around its issue price of ₹147. A flat GMP often reflects neutral sentiment in the early phase of bidding but can change quickly based on subscription figures and market mood.

Peer Comparison

Here is how Pushpa Jewellers stacks up against its closest listed peers:

While Pushpa Jewellers lags in scale, it performs significantly better in return ratios, especially RoE and RoCE. Its PE valuation is also moderate relative to some peers.

Use of IPO Proceeds

The primary objectives for the funds raised through this IPO are:

1. Working Capital Requirements – Expansion of operations and procurement of raw materials.

2. Inventory Management – To handle the rise in production and showroom stock needs.

3. Capital Expenditure – For setting up new showrooms and expanding retail presence.

4. General Corporate Purposes – For miscellaneous operational expenses and future contingencies.

5. Issue Expenses – To cover underwriting, legal, and administrative costs related to the IPO.

Strengths of Pushpa Jewellers IPO

• Consistent Financial Performance: Strong YoY revenue and PAT growth with expanding margins.

• High Profitability: Robust return ratios such as ROE and ROCE.

• Strong Brand Identity: Known for craftsmanship and lightweight gold designs.

• Experienced Management: Promoters and senior leaders have deep roots in the jewellery business.

• Export Presence: International clientele enhances revenue diversification.

Risks to Consider

• SME Platform Listing: May have lower liquidity and lesser analyst coverage post-listing.

• Gold Price Volatility: Being a gold-centric business, profitability is sensitive to commodity prices.

• Working Capital Intensive Model: High dependency on inventory turnover.

• Competition: Operates in a highly fragmented and competitive jewellery market.

• Dependency on Key Locations: Heavy reliance on performance of a few showrooms.

Promoter Shareholding

The post-IPO dilution still leaves a strong promoter holding, which usually indicates a commitment to long-term growth and governance.

Should You Invest?

Here’s a balanced evaluation to help you decide:

Reasons to Apply

• Reasonable pricing compared to earnings and peer valuations

• Strong financials and attractive return metrics

• Clear use of funds for business expansion

• Positive historical performance and brand identity

Reasons to Stay Cautious

• Flat grey market premium signals limited speculative demand

• Smaller size and SME platform listing may reduce post-listing liquidity

• Sector dependent on volatile gold prices and consumer trends

Expert View

Analysts tracking SME IPOs consider Pushpa Jewellers IPO attractive for medium to long-term investors who are seeking growth in niche sectors with export potential. Listing gains might be modest due to GMP trends, but the long-term fundamentals seem strong.

Final Verdict

The Pushpa Jewellers IPO offers an interesting opportunity for investors who value strong financials, high returns, and sector-specific growth potential. Although the GMP is currently flat and the listing is on the SME platform, the company’s fundamentals support the possibility of medium- to long-term value appreciation.

Retail investors with a higher risk appetite and a willingness to hold through volatility can consider applying for a single lot. Institutional interest, allotment results, and final subscription status will provide further clues about how the IPO is likely to perform on its listing day.

For now, it stands as one of the more fundamentally solid offerings in the SME segment of 2025.

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