HYDERABAD, India, Sept. 4, 2026, 10:25 p.m. IST — Deepa Jewellers closed its IPO with orders for 42.61 times the shares on offer. The crowded book now passes a less comfortable question to Tuesday’s market.
Deepa earned ₹104.79 crore in fiscal 2026, up 158%. Operations still consumed ₹14.73 crore of cash. The company wants ₹215 crore of the fresh issue to carry more inventory.
Heavy demand can tighten allotments. It cannot fix cash conversion.
One book, very different demand
Final subscription at 8:20 p.m. IST on Sept. 3
The offer attracted bids for 789.1 million shares against 18.52 million available, according to exchange data. Non-institutional investors led with 105.96-fold demand. Qualified institutions subscribed 37.01 times, while retail demand reached 18.55 times.
Allotment was scheduled for Friday. At the reporting cut-off, current market reports still described finalization as due or expected. Applicants should use Bigshare, BSE or NSE, not a third-party result page.
Share credits and refunds are due Sept. 7. Trading is proposed for Sept. 8 on both exchanges. Until then, there is no stock price to chart.
The ₹215 crore question
Revenue rose 37.9% to ₹1,926.68 crore in fiscal 2026, the SEBI-filed prospectus shows. EBITDA increased to ₹146.34 crore from ₹56.01 crore. Its margin widened to 7.6% from 4.01%. Those are strong changes.
The cash line is stubborn. Operating cash flow shifted from positive ₹4.85 crore in fiscal 2024 to two consecutive outflows. Debtor days rose to 36 last year.
The conversion gap widened
Profit after tax versus cash from operations, ₹ crore
FY2024
FY2025
FY2026
This is how a fast-growing gold wholesaler can report profit and still need capital. Deepa paid for metal, held inventory for 18 days and waited longer for buyers. Its net operating cycle was 53 days, with suppliers extending only one day of credit.
The IPO therefore does more than finance expansion. It takes pressure off the cash cycle.
An issue split almost in half
The ₹459.72 crore offer contains ₹250 crore of new shares. The rest is a ₹209.72 crore promoter sale at the upper price. Only the first part reaches the company.
Fresh capital and an exit sit side by side
₹459.72 crore total issue at the upper price
At ₹177.
Ashish Agarwal and Seema Agarwal are offering up to 5.92 million shares each. Their disclosed weighted average cost is ₹0.50 per share. At ₹177, their combined gross proceeds reach ₹209.72 crore. That is before tax and expenses.
The cap price values the enlarged equity near ₹1,701 crore. Dividing fiscal 2026 profit by the post-offer share count gives simple pro-forma earnings around ₹10.90 per share. That works out to roughly 16.2 times earnings, before any benefit from the fresh capital.
The calculation is not company guidance. It makes the dilution visible.
What the first price cannot answer
Deepa sells hallmarked 22-karat pieces to retail chains and independent stores. It had 373 customers at July 31 and relies on 41 outside karigars. A 6,696-square-foot Hyderabad facility was expected to open before the end of fiscal 2027’s first half.
The customer list is concentrated. Five buyers produced 44.7% of fiscal 2026 revenue, while the top 10 supplied 64.67%. The 10 largest suppliers accounted for 91.81% of purchases.
That creates a narrow route from disruption to cash. Higher gold prices can enlarge revenue and inventory funding together. Delayed collections would do the same to working-capital demand.
Tuesday’s opening price will measure scarcity and appetite. The prospectus cautions that the offer price “should not be considered to be indicative” of subsequent trading. The more durable verdict arrives in operating cash flow, receivable days and borrowings.
