Advit Jewels Limited IPO - Business Overview, Insight and Education

Advit Jewels Limited IPO - IPORupee Business Overview

Advit Jewels Limited is a Jaipur-based jewellery company engaged in manufacturing and selling traditional and contemporary handcrafted fine jewellery. The company mainly focuses on Kundan, Polki, Diamond and studded jewellery.

The company operates under the brand identity Rambhajo since 1921. The Rambhajo brand has its roots in a jewellery business established in 1921 by Late Shri Kishan Gilara in Jaipur. Advit Jewels was incorporated in 2019 to carry forward this jewellery legacy in a corporate structure.

In simple words, Advit Jewels is a heritage jewellery manufacturing company focused on premium handcrafted jewellery with strong Jaipur craftsmanship identity.

IPO Structure

Advit Jewels IPO is a mainboard IPO proposed to be listed on BSE and NSE.

The IPO is a 100% book-built issue. The issue is a complete Fresh Issue of up to 1,19,68,000 equity shares of face value Rs. 10 each. There is no Offer for Sale.

The company had earlier planned an issue of up to 1,38,00,000 equity shares, but after Pre-IPO Placement of 18,32,000 equity shares at Rs. 125 per share aggregating to Rs. 2,290 lakhs, the issue size was reduced to up to 1,19,68,000 equity shares.

Since the IPO is a fresh issue and there is no OFS, the IPO money will go to the company after deducting issue-related expenses.

Company Background

Advit Jewels Limited was incorporated in Jaipur, Rajasthan on October 29, 2019 as Advit Jewels Private Limited.

The company was converted into a public limited company in 2025 and renamed Advit Jewels Limited.

The registered office is located at Flat No. 301, Pearl Premier, Plot No. 4, Jamna Lal Bajaj Marg, C-Scheme, Jaipur, Rajasthan.

The corporate office is located at Flat No. 201 and Basement, Pearl Premier, Plot No. 4, Jamna Lal Bajaj Marg, C-Scheme, Ashok Nagar, Jaipur, Rajasthan.

The promoters of the company are Mr. Nitin Gilara, Mr. Prateek Gilara, Mr. Vipul Gilara and Mr. Krishna Vardhan Gilara.

Brand - Rambhajo Since 1921

The company’s business is closely linked to the Rambhajo brand legacy.

Rambhajo was originally established in 1921 in Jaipur as a local brokerage and trading venture in the jewellery market. Over time, it developed recognition in jewellery manufacturing and retail space in Jaipur.

Advit Jewels now operates under the brand name Rambhajo since 1921. This brand positioning is important because jewellery is a trust-led business. Customers often give importance to legacy, craftsmanship, purity, design quality and family reputation.

The company has acquired the registered trademark for Rambhajo from a promoter group member, but approval of Form TM-P to record the assignment is pending. The company has also applied for registration of the Advit brand, which is pending.

What Does Advit Jewels Do?

Advit Jewels manufactures and sells fine jewellery.

Its product focus includes Kundan jewellery, Polki jewellery, Diamond jewellery, studded jewellery, bridal jewellery, contemporary handcrafted jewellery, traditional jewellery and customized jewellery pieces.

The company blends traditional jewellery-making methods with modern design elements. Its core strength lies in craftsmanship, design innovation and customization.

Product Range

The company’s product offerings include necklaces, earrings, finger rings, bangles, brooches, Nath and customized jewellery pieces.

The jewellery is mainly made using 14 carat and 18 carat gold as per customer preference.

The company caters to both B2B and B2C customers, but the business is primarily B2B-oriented.

Customer Base

Advit Jewels mainly serves B2B customers such as national retailers, regional retailers, family jewellers, dealers and jewellery showrooms.

The company also serves B2C customers in certain cases, especially through customized jewellery orders.

The B2B model helps the company serve wider markets through established jewellery retailers. However, it also creates dependence on larger customers and repeat orders.

Business Model

Advit Jewels follows a design-led jewellery manufacturing model.

The company develops jewellery designs, procures raw materials such as gold, diamond polki and gemstones, manufactures jewellery through in-house Karigars and supported artisans, carries out quality control and finishing, and sells finished jewellery to B2B customers or customized B2C clients.

The company’s value is not only in gold and gemstones. Its value also comes from design, craftsmanship, heritage branding, customer relationships and customization capability.

Manufacturing Facility

The company’s manufacturing facility is located in Jaipur at A-5, Jamna Lal Bajaj Marg, C-Scheme, Jaipur, Rajasthan.

This facility is the main centre for production activities. The company uses modern machines such as 3D printers, casting units and polishing machines along with traditional craftsmanship.

The manufacturing process is centralized, and the company uses quality control and quality assurance systems to maintain product standards.

Karigar Dependency

Advit Jewels depends on skilled Karigars for manufacturing Kundan Polki jewellery.

As of April 30, 2026, the company had 35 Karigars employed in its manufacturing facility. These Karigars are important because Kundan Polki jewellery requires specialized traditional skills.

This is a major strength as well as a risk. Skilled Karigars help the company maintain design quality and craftsmanship, but loss of Karigars or difficulty in hiring skilled artisans can affect production and delivery timelines.

Raw Materials

The company’s key raw materials include gold, diamond polki, precious stones, semi-precious stones, silver and other jewellery inputs.

Gold is the biggest raw material cost. For the period ended December 31, 2025, gold formed 76.44% of total cost of materials consumed. Diamond Polki formed 20.91% and precious and semi-precious stones formed 2.49%.

This means the business is highly sensitive to gold prices, diamond polki prices and gemstone price movement.

Raw Material Risk

The prices of jewellery products are highly dependent on the prices of gold, diamond polki and precious and semi-precious stones.

For the period ended December 31, 2025 and FY2025, FY2024 and FY2023, these raw materials formed more than 99% of total cost of materials consumed.

The company does not have long-term contracts with suppliers and procures raw materials mainly through purchase orders or spot market arrangements.

This exposes the company to raw material price volatility, availability risk and supplier concentration risk.

Supplier Concentration

Advit Jewels relies on a limited number of suppliers.

For the period ended December 31, 2025, the top 5 suppliers contributed 88.27% of raw material purchases, and the top 10 suppliers contributed 93.55% of raw material purchases.

This is a significant risk. Any disruption from major suppliers, delay in procurement, quality issue or price increase can affect manufacturing and margins.

Inventory and Working Capital

Jewellery business is working capital intensive because companies need to maintain high inventory of gold, stones, work-in-progress and finished jewellery.

Advit Jewels has seen a sharp increase in inventory.

Inventory increased from Rs. 1,041.67 lakhs in FY2023 to Rs. 4,491.67 lakhs in FY2024 and further to Rs. 10,723.91 lakhs in FY2025. For the period ended December 31, 2025, inventory stood at Rs. 9,902.38 lakhs.

Inventory holding days were 91 days in FY2023, 158 days in FY2024, 199 days in FY2025 and 154 days for the period ended December 31, 2025.

This is one of the most important investor points in this IPO.

Why High Inventory Matters

High inventory can help the company offer more designs and meet customer demand. In jewellery, customers expect variety, especially in bridal, festive and luxury pieces.

But high inventory also blocks cash.

If gold prices fall, design preferences change, customer demand slows or inventory becomes slow-moving, margins and cash flows may be affected.

For a jewellery IPO, inventory quality is as important as revenue growth.

Seasonality

Jewellery demand in India is seasonal.

Demand usually rises during wedding seasons, festivals, Akshaya Tritiya, Dhanteras and Diwali.

Advit Jewels’ quarterly revenue shows seasonality. In FY2025, Quarter 4 contributed 47.94% of total revenue. For the nine months ended December 31, 2025, Quarter 3 contributed 40.66%.

This means weak demand during peak quarters can disproportionately affect the company’s annual performance.

Jaipur Concentration

The company’s manufacturing operations are fully based in Jaipur.

The company is also dependent on Jaipur-based suppliers for a meaningful portion of raw material purchases. For FY2025, 73.09% of total raw material purchases were sourced from suppliers based in Jaipur.

Jaipur is a major jewellery hub and provides skilled artisans, suppliers and industry ecosystem. This is a strength.

However, any disruption in Jaipur due to labour issues, local regulations, natural calamities, utility disruption or logistics issues can affect manufacturing and supply.

Customer Concentration

Advit Jewels has customer concentration risk.

For the period ended December 31, 2025, the top 10 customers contributed 56.49% of revenue from operations. For FY2025, the top 10 customers contributed 54.17%. In FY2023, the top 10 customer contribution was 75.47%.

The company generally does not enter into long-term contracts with most customers and operates mainly on purchase orders.

This means customer retention, repeat orders and timely payments are important for future performance.

Financial Performance

Advit Jewels has shown strong revenue growth.

Revenue from operations increased from Rs. 4,660.41 lakhs in FY2023 to Rs. 6,944.26 lakhs in FY2024 and Rs. 12,493.73 lakhs in FY2025. For the period ended December 31, 2025, revenue from operations was Rs. 12,379.01 lakhs.

The company reported profitability, and its FY2025 EPS was Rs. 7.92. Net Asset Value per equity share was Rs. 18.16 as of March 31, 2025 and Rs. 26.13 for the period ended December 31, 2025.

However, investors should also study cash flow, working capital, inventory and debt.

Cash Flow

The company had negative operating cash flow in the past three fiscals.

Net cash flow from operating activities was negative Rs. 277.35 lakhs in FY2023, negative Rs. 1,049.33 lakhs in FY2024 and negative Rs. 3,697.69 lakhs in FY2025. For the period ended December 31, 2025, operating cash flow turned positive at Rs. 1,782.96 lakhs.

This shows that the business has historically required significant working capital. Investors should check whether positive operating cash flow can continue after IPO.

Objects of the Issue

The issue proceeds are proposed to be used mainly for working capital requirements, repayment or prepayment of borrowings and general corporate purposes.

The company proposes to use up to Rs. 6,500 lakhs towards repayment or prepayment of borrowings. This may reduce finance cost and improve debt-equity ratio.

However, retail investors should also check whether the company will still need higher working capital after reducing debt.

Key Financial and Business Snapshot

Figures are based on RHP disclosures. Investors should read the full RHP before making any IPO decision.

Key Strengths

• Heritage brand positioning through Rambhajo since 1921.
• Jaipur jewellery ecosystem with access to artisans, suppliers and design culture.
• Focused product positioning in Kundan Polki jewellery.
• Strong revenue growth from FY2023 to FY2025.
• Design and customization capability.
• Fresh issue only with nil OFS.
• B2B network of national retailers, regional retailers and family jewellers.

Key Risks

• Gold price volatility.
• Diamond Polki and precious/semi-precious stone price risk.
• High inventory and working capital intensity.
• Supplier concentration.
• Customer concentration.
• Jaipur concentration.
• Karigar dependency.
• Trademark assignment and registration risk.
• Negative operating cash flow history.
• Seasonality risk.
• Valuation risk after final price band.

IPORupee Education

What is Kundan Jewellery?

Kundan jewellery is a traditional Indian jewellery style where stones are set using refined gold-based settings. It is commonly used in bridal and festive jewellery and requires skilled craftsmanship.

What is Polki Jewellery?

Polki jewellery uses uncut diamonds. It is a premium traditional jewellery category widely used in bridal and luxury jewellery.

What is Diamond Polki?

Diamond Polki means uncut diamond used in traditional jewellery. Its cost and availability can directly affect the company’s raw material cost.

What is B2B Jewellery Business?

B2B means Business to Business. In a B2B jewellery model, the company sells jewellery to other jewellers, showrooms, retailers and dealers instead of mainly selling directly to end customers.

What is B2C Jewellery Business?

B2C means Business to Customer. In B2C, the company sells directly to individual customers.

What is Inventory Holding Days?

Inventory holding days show how long inventory remains with the company before being sold or consumed. High inventory days mean cash is blocked for longer.

What is Working Capital?

Working capital is money required to run daily business operations. In jewellery business, working capital is needed for buying gold, stones, maintaining inventory, making jewellery and waiting for customer payments.

What is Gold Price Risk?

Gold price risk means the company’s cost and inventory value can change due to gold price movement.

What is Customer Concentration?

Customer concentration means a large portion of revenue comes from a few customers. If one or more large customers reduce orders, delay payments or shift to competitors, revenue may be affected.

What is Supplier Concentration?

Supplier concentration means the company depends heavily on a few suppliers. If a major supplier fails to supply raw material on time or increases prices, production and margins can be affected.

What is Fresh Issue?

Fresh Issue means the company issues new shares and receives IPO money. In Advit Jewels IPO, the issue is a fresh issue and there is no OFS.

What is OFS?

OFS means Offer for Sale. In OFS, existing shareholders sell shares and the money goes to selling shareholders. Advit Jewels IPO has nil OFS.

What is Pre-IPO Placement?

Pre-IPO Placement means the company issues shares to selected investors before the IPO. Advit Jewels completed Pre-IPO Placement of 18,32,000 equity shares at Rs. 125 per share, aggregating to Rs. 2,290 lakhs. After this, the IPO size was reduced.