Divine Hira Jewellers IPO booked 69% on Day 1, retail portion fully subscribed; check key IPO details

Divine Hira Jewellers IPO opened on Monday, March 17, on a tepid note. At the end of bidding at 5 pm, Divine Hira Jewellers IPO was overall subscribed 69%. Investors across categories submitted bids for over 22.76 lakh shares against 33.6 lakh shares on offer. The NSE SME issue will close for subscription on Wednesday, March 19.

The retail portion of the IPO was fully subscribed on the first day. The retail investors applied for more than 20 lakh shares against 16.8 lakh shares on offer, leading to a subscription of 1.19 times. The non-institutional investors’ (NII) segment was booked 19%, with bids for 3.16 lakh shares against 16.8 lakh crore shares set aside for the category.

Divine Hira Jewellers IPO details

The Divine Hira Jewellers IPO is a fixed-price issue aimed at raising a total of ₹31.84 crore. The NSE SME issue is an entirely fresh issuance of 35.38 lakh shares.

Shares in the IPO are being offered at ₹90 per piece, with the lot size for an application being 1,600. This translates into a minimum application amount of ₹1.44 lakh for retail investors and ₹2.88 lakh for high networth individuals (HNIs), who need to bid for a minimum of 2 lots.

The company has appointed Horizon Management Pvt. Ltd as the book-running lead manager of the issue and Bigshare Services Pvt. Ltd as its registrar. Giriraj Stock Broking Pvt. Ltd is the market maker for the Divine Hira Jewellers IPO.

Divine Hira Jewellers IPO dates

After the subscription ends on March 19, the allotment for the Divine Hira Jewellers IPO is expected to be finalised on March 20.

Successful bidders can expect shares to be credited to their demat accounts on March 21, with other bidders receiving the refund of the bidding amount in their bank accounts the same day.

Divine Hira Jewellers shares are scheduled to be listed on the NSE Emerge platform on Monday, March 24.

Divine Hira Jewellers IPO: Use of proceeds

Divine Hire Jewellers proposes to utilise ₹19 crore from IPO net proceeds to fund the working capital requirements. Another ₹3 crore is proposed to be used for prepayment, or repayment, of all or a portion of certain loans availed by the company. While the remaining ₹6.2 crore would be used for general corporate purposes.

Divine Hira Jewellers IPO: About the company

Established in 2022, Divine Hira Jewellers Ltd specialises in designing and marketing premium 22 Karat gold jewellery. The company is based in the Zaveri Bazar area in Mumbai and caters to wholesalers, showrooms and retailers.

The company does not have its own manufacturing facility, but claims to have established strong relationships with skilled artisans. These craftsmen, in collaboration with the company’s in-house designers, produce a variety of handcrafted jewellery.

The company’s products include necklaces, mangalsutras, chains, malas, rings, pendants, bracelets, bangles, kadas, coins and wedding jewellery. The company is also a wholesaler of silver articles, bullions and coins in Mumbai.

Divine Hira Jewellers IPO: Company financials

For the first six months of the current financial year 2024-25 ended September 2024, Divine Hira Jewellers reported a revenue of ₹136.03 crore, while profit after tax (PAT) for the period stood at ₹2.5 crore.

For the full fiscal 2023-24, revenue stood at ₹183.41 crore compared to ₹246.45 crore in previous financial year. However, PAT increased to ₹1.48 crore in FY24 compared to ₹91 lakh in FY23.