Nityas Gems & Jewellery shares made a positive debut on the stock exchanges on October 8, listing at a premium of around 9% over the IPO price on the BSE. The stock was later locked in a 5% upper circuit and traded more than 14% above its issue price.
The stock listed at ₹82 per share on the BSE, marking a 9.33% premium over the IPO price of ₹75. On the NSE, the shares debuted at ₹80, representing a 6.67% premium over the issue price.
Nityas Gems & Jewellery is engaged in the design, manufacturing and sale of lab-grown diamond-studded gold jewellery in India. The company raised ₹108.42 crore through its IPO, which comprised 1.4456 crore equity shares with a face value of ₹5 each. The price band was fixed at ₹70–75 per share, with a lot size of 200 shares.
The IPO opened for subscription on 30 September and closed on 5 October, with anchor bidding taking place on 29 September. The issue proceeds will be used to meet working capital requirements and for general corporate purposes.
The IPO had a reservation of not more than 50% for qualified institutional buyers (QIBs), not less than 15% for non-institutional investors (NIIs) and not less than 35% for retail investors.
Vishal Nirmiti shares, meanwhile, made a weak debut on 8 October and were later locked in a 5% lower circuit. The stock was down 7.16% from its IPO price at ₹204.25 on the BSE.
The shares listed at ₹215 on both the BSE and NSE, a discount of 2.27% to the issue price of ₹220. The stock later fell to ₹204.25 on the BSE, translating into a 7.15% discount to the IPO price.
The ₹178 crore IPO of Vishal Nirmiti comprised a fresh issue of up to 69.71 lakh equity shares worth ₹145 crore and an offer for sale (OFS) of 15 lakh shares worth ₹33 crore at the upper end of the price band. The IPO price band was ₹208–220 per share.
The issue was subscribed 1.71 times on the final day of bidding on 5 October.
The company plans to use the IPO proceeds to fund working capital requirements, repay loans and meet general corporate purposes.
Vishal Nirmiti is engaged in manufacturing and dealing in pre-stressed concrete (PSC) sleepers for railways, pre-cast and pre-stressed concrete products, and fabrication of mild steel (MS) pipes, MS liners and pre-stressed pipes for pumped storage projects.
The company also provides engineering, procurement, infrastructure and construction services for railway infrastructure, civil engineering, irrigation and other infrastructure projects.
Here’s what experts say
Nityas Gems & Jewellery: Positive debut, but execution remains key
Dr. Ravi Singh, Chief Research Officer at Master Capital Services Ltd, said that the company commenced operations in July 2022 as a B2B manufacturer and supplier of lab-grown diamond-studded gold jewellery. Its integrated business model includes B2B manufacturing and distribution, as well as D2C omnichannel retail operations through its subsidiary, Ayaani Diamonds and Jewellery Pvt Ltd.
Under its B2B operations, the company supplies jewellery to organised retailers, standalone retailers and wholesalers across 18 states and two Union Territories. Its prominent customers include GIVA, Palmonas, ONYA and Ladia Diamonds. The company has also supplied products to international B2B customers in the UAE, Australia, Canada, Taiwan and Kenya over the last three fiscals.
Dr. Singh said the domestic gems and jewellery market is projected to grow at a 12.8% CAGR between CY25 and CY30, while the retail diamond jewellery market is expected to grow at a 2.8% CAGR during the same period. The lab-grown diamond jewellery market is projected to reach ₹71,890 million by CY30, registering a 15.8% CAGR.
“In the near term, investors may focus on the company’s ability to sustain its revenue and profit growth while managing its working capital-intensive business model,” he said. The stock could attract greater market attention if upcoming results show sustained revenue growth, improving margins, higher manufacturing capacity utilisation and better operating cash flows, he added.
Vishal Nirmiti: Weak debut puts focus on execution
On Vishal Nirmiti, Dr. Singh said that the company operates across Maharashtra, Madhya Pradesh, Gujarat, Himachal Pradesh, Odisha, Delhi, Punjab and Karnataka and is engaged in manufacturing pre-stressed concrete (PSC) sleepers, precast and prestressed concrete products, large-diameter mild steel (MS) pipes, MS liners and penstock pipes. It also provides engineering, procurement, infrastructure and construction services.
The company’s operations are divided into manufacturing and services segments, with projects and job-work assignments undertaken for clients including Indian Railways, DFCCIL and Larsen & Toubro.
According to Dr. Singh, the railway sleeper market is projected to grow from 271.4 million units in FY25 to 323.8 million units by FY30, implying a 3.8% CAGR, driven by railway network expansion, capacity enhancement, freight corridors, modernisation and replacement of ageing sleepers.
Meanwhile, the Indian mild steel pipes and tubes market is projected to grow from $22.3 billion in FY25 to $38.9 billion by FY30, representing an 11.8% CAGR.
“The weak listing could keep near-term sentiment under pressure, while fresh investments from investors might wait for price stability,” Dr. Singh said. He added that the outlook will depend on the company’s ability to sustain growth, improve profitability and strengthen cash generation.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
