Divine Hira Jewellers shares hit 5% lower circuit after making flat debut on NSE SME; check details

Divine Hira Jewellers Ltd shares made a muted debut on the NSE SME platform on Monday, March 24, with the stock opening flat compared to IPO price.

Divine Hira Jewellers Ltd shares opened at ₹90 apiece, the same as the IPO price. However, soon after listing the stock dropped as much as 5% to hit the lower circuit limit at ₹85.5 apiece on the NSE.

Within the initial 10 minutes of trade, as many as 1.78 crore shares changed hands on the NSE Emerge platform, with a total trading value of ₹1.59 crore. The company’s market valuation stood at ₹111.55 crore.

At the listing price of ₹90 per share, the value of a single lot of equity shares bagged by IPO investors remained unchanged at ₹1,44,000 (₹ 90 x 1,600). However, after the stock hit the 5% lower circuit limit, the IPO investors would have faced a loss of ₹7,200 per lot as the value of the minimum investment for at least a single lot was reduced to 1,36,800.

Divine Hira Jewellers raises ₹31.84 crore through SME IPO

Divine Hira Jewellers raised ₹31.84 crore through its SME IPO on the NSE last week. The issue was open for subscription from March 17 to March 19. The public offer comprised a fresh issue of 35.38 lakh shares and no offer-for-sale (OFS) component. The company fixed the price at ₹90 per share for the IPO. The minimum lot size was 1,600 shares for retail investors.

Riding on strong retail demand, the SME public offering was subscribed nearly four times on the final day of the bidding. The public offer received applications for more than 1.33 crore shares compared to the net issue size of 33.6 lakh equity shares.

Retail individual investors placed bids for more than 1.11 crore shares against the quota of 16.8 lakh shares. The retail portion was subscribed 6.62 times the shares on offer.

The non-institutional investors’ (NIIs) portion was booked 1.27 times as NIIs submitted applications for 21.34 lakh shares against 16.8 lakh shares set aside for them. Qualified Institutional Buyers (QIBs) placed bids for 56,000 shares.

Divine Hira Jewellers is engaged in designing and marketing of premium 22 Karat gold jewellery. The jewellery designer supplies a range of jewellery products to showrooms, wholesalers and retailers. Its product range includes mangalsutras, chains, necklaces, rings, pendants, malas, bracelets, kadas, bangles, coins and wedding jewellery. Divine Hira Jewellers is also a wholesaler of bullion, coins, gold jewellery and silver articles in Mumbai.

The company has proposed to utilise IPO proceeds of ₹ 3 crore for repaying in parts or full certain loans. The company will use ₹19 crore of IPO funds for meeting working capital requirements and the rest ₹6 crore for general corporate purposes.

Divine Hira Jewellers Financials

Divine Hira Jewellers posted revenue from operations of ₹136.03 crore for the April-September period of FY 2024-25. Its profit after tax (PAT) stood at ₹2.5 crore during the period.

The company reported revenue of ₹183.41 crore in FY 2023-24 compared to ₹246.45 crore in the previous financial year (FY23). Its profit after tax increased to ₹1.48 crore in FY24 from ₹91 lakh in the preceding financial year.